ABLE Act Could Help Parents Of Children With Disabilities



      A new federal law, the ABLE Act, allows those close to young people with disabilities the right to deposit tax-deferred income in a savings account earmarked for the beneficiary’s future care, treatment, and life enjoyment.  ABLE Act accounts are relatively similar to college savings accounts: an adult who sets up the account is encouraged to deposit money for a young person’s future use.  One of the incentives for adults to contribute to the account is the tax deferral granted to persons who meet the standing required to be shown by persons who set up these accounts with the help of their financial advisors.  The National Down Syndrome Society (http://www.ndss.org/Advocacy/Legislative-Agenda/Creating-an-Economic-Future-for-Individuals-with-Down-Syndrome/Achieving-a-Better-of-Life-Experience-ABLE-Act/) worked with other advocates to move this measure through Congress.

The federal ABLE Act, passed in December 2014, encourages the 50 states to “opt into” the law.  The federal act and its tax savings are not enjoyed in a state until that state has enacted corresponding opt-in legislation.  Here in Illinois, an opt-in bill – HB 3117 (http://www.ilga.gov/legislation/billstatus.asp?DocNum=3117&GAID=13&GA=99&DocTypeID=HB&LegID=89258&SessionID=88) was filed on Wednesday, February 25 by Representative Bob Pritchard.  Pritchard represents much of DeKalb County and a surrounding region of north-central Illinois.