The Achieving a Better Lifer Experience (ABLE) Act, which aims to remove bureaucratic obstacles to help Americans save for future, has passed Congress. Under the ABLE Act, people with disabilities are allowed a saving account up to $100,000 with tax-free treatment. Thus the ABLE Act helps pay for disability-related expenses and save for college and retirement. Although the ABLE Act, involving tax code and medicare, may still cost $2 billion government budget over 10 years after setting certain eligibility requirements, it has passed with broad bipartisan support in the Congress.
See Gail Russel Chaddock, “ABLE Act: How one bill offers hope on Congress Biggest Problems”, The Christian Science Monitor (December 17, 2014).
Posted by Jiaqi Wang, Associate Editor, Wealth Strategies Jounral.