By Ashley Gilmore
WASHINGTON— Celebrating last year’s passage of an act that creates tax-free savings accounts for individuals with disabilities and their families, Vice President Joseph Biden Tuesday said the law helps disabled Americans live more independently.
President Barack Obama signed the measure into law last December after approval by Congress, allowing eligible families and individuals to creating savings accounts that will not hurt their eligibility for other public benefits such as Medicaid.
“The catch (had been) that if you have more than $2,000 in personal saving you lose thousands in public benefits,” said Biden.
Rep. Cathy McMorris Rodgers, R-Wash., whose son has a disability, recalled being told not to put any assets in his name because it would affect his eligibility for government benefits.
A means and resource test conducted by public benefit programs like Medicaid, the Supplemental Nutrition Assistance Program and Supplement Security Income, had limited eligibility to exclude individuals who reported more than $2,000 in cash savings, retirement savings and other accounts.
“Last year, one month I went over my limit and I was penalized and losing out on my benefits,” said Sara Wollf who has Down Syndrome and has been an advocate for the National Down Syndrome Society since 2009.
Those eligible for the new tax-free savings program include individuals with significant disabilities whose onset occurred before age 26 and who are already receiving benefits from Social Security and those who do not receive benefits but meet the requirements of Social Security Income and the age onset requirement.
“Given the same chance they can and will be able to live independent lives,” Biden said.
The new law amends section 529 of the IRS code of 1986 to create the tax-free savings accounts. Individuals with disabilities will be allowed to develop an account to use for qualified disability expenses like education, housing, transportation, employment, health care and other expenses.
Many people credited bipartisan efforts for the passing of the ABLE Act.
Rep. Ander Crenshaw, R-Fla., who was one of the original sponsors eight years ago, credited a strong bipartisan effort for passage of the bill.
Wolff said she will take advantage of the new law.
“I can officially ask my boss for that raise,” she said.
