Parents of those with disabilities will be able to save more in the New Year to care for their adult children. Previously, working adults with disabilities could keep no more than $2,000 for additional care and basic life expenses without being penalized by Social Security.
Northern Illinois Congressman Aaron Schock says the measure allows savings of up to $14,000 per year, tax deferred, on behalf of those with disabilities:
“It allows for parents as well as extended to contribute to an ABLE account that will not only be able to cover medical expenses but general living expenses for grown adults who are now living on their own.”
Holly Roos has a son and daughter with Fragile X Syndrome. She says the ABLE Act fixes the current standard that children born with disabilities are forced into a life of poverty if they live independently:
“Can you imagine how you sleep at night knowing you have no way to save for their future, a future that includes additional expenses because of the disabilities. I can tell you first hand, you don’t sleep at night.”
The ABLE Act stands for Achieving A Better Life Experience. State treasurers will collect the funds the same way as college savings accounts. The measure cleared the U.S. House and Senate and is on its way to the President’s desk.