Act must pass so more with disabilities can gain financial stability
When the federal Achieving a Better Life Experience (ABLE) Act passed in 2014, it brought life-changing reforms for many Americans with disabilities and their families. ABLE accounts are breaking down financial barriers, providing greater independence, and allowing eligible individuals to save like never before.
Before the ABLE Act, people with disabilities could only save $2,000 before losing means-tested benefits such as Medicaid or Supplemental Security Income (SSI). Disability-related expenses often pose a significant financial burden to families. The old restrictions and asset limits made financial planning, saving and investing, and joining the workforce difficult – pushing many people with disabilities further into the financial margins.
In 2016, Ohio launched STABLE Account, the nation’s first ABLE program.
Administered by the Treasurer’s office, the STABLE Account program has become a national leader and is setting the standard for ABLE program success.
In fact, despite the challenges brought on by the COVID-19 pandemic, the STABLE Account program had a banner year in 2020, including record days, weeks, and months for new enrollments. Since January 2019, we have more than doubled the size of the program, and today, there are more than 22,000 active STABLE accounts with over $210 million in total contributions.
Account holders can save up to $15,000 each year without jeopardizing federal assistance programs. And if the account holder is employed, they can save an additional $12,760 each year. Earnings on STABLE accounts grow tax-free, as long as funds are spent on qualified expenses, such as housing, transportation, healthcare, assistive technology, living expenses, and many others.
We hear countless stories from account holders sharing their firsts – buying cars, paying rent on their own apartments, and even putting down payments on homes. Their successes show just how powerful ABLE accounts can be for individuals and drive our team to expand the program.
Yet too many people living with disabilities remain ineligible for STABLE and other ABLE account programs nationwide because of the age of onset of their disability. Current law restricts eligibility only to those who acquired a disability before the age of 26. This excludes millions of servicemembers and veterans, first responders and police officers, and other Americans who acquired their disability after age 26 and who would greatly benefit from an ABLE account.
This is why Congress needs to pass the recently reintroduced Achieving a Better Life Experience (ABLE) Age Adjustment Act (S. 331). This bipartisan, commonsense legislation would raise the age of eligibility from 26 to 46. According to the U.S. Senate Special Committee on Aging, this would make more than six million adults with disabilities, including one million veterans, eligible to enroll in ABLE plans nationwide.
In the Buckeye State, we’ve seen how STABLE accounts improve financial stability, promote independence, encourage employment, improve quality of life, and give people the peace of mind that comes with a plan for the future.
It’s time to expand the life-changing benefits of ABLE accounts to millions of more Americans who deserve the same opportunities.
Robert Sprague currently serves as Ohio’s 49th treasurer of state. As treasurer, he oversees the state’s investment and debt portfolios, domestic and international custody portfolios, and annual cash movements and deposits.