There may be a new way for people with disabilities to save money and open tax-free savings accounts if a bill can pass the Senate.
According to the Associated Press, supporters are urging Senate leaders to pass a bill allowing Americans with disabilities to open tax-free savings accounts to pay for long-term expenses. The House already passed the measure by an overwhelming majority, 404-17.
“It was an unusual moment of bipartisanship in a Congress sharply divided over immigration, taxes and spending,” the AP reported. The legislation has been named the Achieving a Better Life Experience Act, or ABLE Act.
Supporters of the bill include parents of children with Down syndrome and other disability advocates. The bill was modeled after tax-free college savings accounts—a person would have to be diagnosed by age 26 with a disability that results in “marked and severe functional limitations” and those who are already receiving Social Security Disability Insurance (SSDI) benefits would qualify.
Families or individuals could deposit up to $14,000 annually to pay for long-term needs such as education, transportation and health care, according to the AP.
The news service reported that the act would allow people to accrue up to $100,000 in savings without the person losing eligibility for government aid such as Social Security, where the limit is currently $2,000.
Qualifying for Social Security Disability
This is great news for people who have disabilities, who are looking to save long-term money. Hopefully, there will not be any major cuts to programs to help alleviate costs normally assisted through these tax dollars.
Keep in mind, to qualify for SSDI you need to have earned work credits, meaning it is not an entitlement program. It is a good sign that people who are disabled are going to have options. For further information on qualifications, we suggest you visit our FAQ page.
If you are interested in receiving SSDI, we offer free consultations.
Troutman & Troutman, P.C. – Tulsa Social Security disability attorneys