The ABLE (Achieving a Better Life Experience) Act

BY R SCOTT DE VARONA MBA EXECUTIVE DIRECTOR MIABLE 529(A)

The ABLE (Achieving a Better Life Experience) Act was signed into law on December 19, 2014. The ABLE Act created taxfree savings accounts for individuals with disabilities to pay for qualified disability-related expenses (including education, housing, health care and transportation). The law made it possible, for the first time, for people with disabilities to save and pay for extra costs associated with living with a disability and to enhance their financial health, independence and quality of life.

Contributions are subject to annual and cumulative limits and are treated as gifts for federal gift tax purposes. Contributions deposited into an ABLE account must be used for Qualified Disability Expenses. MiABLE accounts offer checking and investment options. Investment growth is not taxable when the funds are used to pay for qualified disability expenses (QDEs).

After the initial ABLE Act was signed into law, there have been subsequent notices, proposed regulations, amendments, new acts and final regulations.

The ABLE Age Adjustment Act was enacted on December 29, 2022 and will go into effect on January 1, 2026.

This extends the age of onset of disability for ABLE account eligibility from 26 to 46 years old, expanding access to ABLE accounts for individuals who become disabled later in life.

This dramatically increases the number of individuals who can benefit from MiABLE accounts, enhancing financial security and support for a broader group of people with disabilities, including Veterans.