Louisiana Treasurer Urging Disability Service Expansion that would Affect Savings Accounts for the Disabled

Louisiana – Louisiana Treasurer John M. Schroder said on July 26, 2022, that he is urging the approval of federal legislation that will increase the number of Louisiana individuals with disabilities who are eligible for Achieving a Better Life Experience (ABLE) accounts. This measure will enhance the Americans with Disabilities Act, which will mark its 25th anniversary on July 26 after being enacted into law in 1990. The ABLE Act was passed into law in 2014, allowing those who acquired or developed a disability before the age of 26 to save money without risking losing their federal disability benefits.

The proposed ABLE Age Adjustment Act, which is now awaiting full Senate approval as part of the Encouraging American Retirement Now (EARN) Act, will provide access to people who were disabled before the age of 46.

“This isn’t just about opening savings accounts,” said Schroder. “This is about empowering people with disabilities and their families to achieve greater economic independence.”

According to the National Association of State Treasurers’ ABLE Today program, millions of people with disabilities and their families rely on a variety of public services for income, health care, food, and shelter. According to the ABLE National Resource Center, eligibility for these public benefits (Social Security, SNAP, Medicaid) requires meeting a means/resource test that limits eligibility to individuals with less than $2,000 in liquid resources, such as cash savings, nonABLE checking and savings accounts, and some retirement funds.

According to the Louisiana ABLE program, families with accounts can save without fear of their assets being weighed against their eligibility. An account holder can save up to $16,000 per year on their own or with the support of family and friends. As long as the balance in an account does not meet or exceed $100,000, the money will not be used to calculate Social Security eligibility.

Furthermore, any interest earned on a Louisiana ABLE account is tax-free as long as the funds are used for eligible disability expenditures. All of the following are considered qualified disability expenses:

• Education – to include tuition for preschool to post‐secondary schools
• Housing
• Transportation
• Employment Training and Support
• Assistive Technology and Related Services
• Personal Support Services
• Health, Prevention, and Wellness
• Financial Management and Administrative Services
• Legal Fees
• Expenses for Oversight and Monitoring
• Funeral and Burial Expenses
• Other expenses which the Internal Revenue Service may identify

Follow this link for more information about Louisiana ABLE accounts.