Achieving a Better Life for People with Disabilities and Their Families
A new tax law that allows disabled individuals to open tax-free savings accounts needs state enacting legislation here to help people in Hawaii.
Achieving a better life experience is what we all want. And now, there鈥檚 an Act for that.
As a parent of three children, including a daughter who has Down syndrome, I want to make sure that my children are cared for, even after I am unable to provide for them. My late father wanted to put money into an account to take care of his 鈥渟pecial鈥 granddaughter (thereby taking care of me, too), but he was advised not to do it. If that nest egg grew to more than $2,000, my disabled daughter would lose precious Social Security benefits under current Medicaid laws.
The kicker is, medical progress, the federal Individuals with Disabilities Education Act, and the enlightened era of civil rights are nurturing a future where more people with disabilities are living longer lives and contributing in increasingly meaningful ways to their jobs and their communities. Independent or semi-independent living is a dream of my daughter鈥檚 and our dream for her. If I am not around to see that happen, she has siblings who will have to find the means. That鈥檚 a burden I don鈥檛 want them to have. Two thousand dollars is not going to go far. Savings for each child matters.
The U.S. House of Representatives voted overwhelmingly to pass the ABLE Act on Dec. 3, 2014. Subsequently signed by President Obama, the law makes it easier for disabled individuals to save for their own futures.
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Enter the Achieving a Better Life Experience (ABLE) Act, which allows parents to put away each year for a disabled child鈥檚 needs, or for individuals with disabilities to save for themselves.
ABLE amends the federal tax code to allow Section 529 tax-exempt savings accounts for disability-related expenses like education, housing and transportation. It gives Americans with disabilities the same type of flexible savings tool that all other Americans use to save for college, medical care and retirement. It empowers people with disabilities who can work, to work hard and save for themselves.
Twenty-four states have now passed ABLE bills, and seven, including Hawaii this past legislative session with , are still awaiting signatures by the governor to be enacted. People with disabilities 鈥 the more than 11 percent of Hawaiians under the age of 26, according to 2011 U.S Census statistics 鈥 need but a signature from Gov. David Ige, and they, too, can access the independence that ABLE would provide.
Opening an ABLE account from another state is not an option for Hawaii residents. The federal law clearly states that a qualified person may only open one ABLE account in the state where the beneficiary resides. For this reason, Hawaii’s disability community is counting on our governor to enact HB119 so that people with disabilities can lead fuller, more independent lives.
A magical act, indeed, ABLE was the most bipartisan piece of legislation in the 113th Congress. Sens. Brian Schatz and Mazie Hirono and Rep. Tulsi Gabbard were among the 454 cosponsors in the House and Senate 鈥 that is 85 percent of Congress agreeing that people with disabilities and their families should have access to the 529 plan that allows for saving for the future.
Keep in mind that while roughly 11 percent of Hawaiians under 26 have disabilities, the number of family and community members whose lives are touched by a person with a disability increases exponentially.聽 The ABLE Act is a benefit to many.
Signed by President Obama last December, ABLE is now the law of the land, but each state must sign its own bill. Please join me in urging Gov. Ige to lead with wisdom and sign the ABLE bill, HB119, into action here in Hawaii.
