House Approves Tax-Free Disability Savings Accounts

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U.S. House members voted overwhelmingly to pass the ABLE Act on Wednesday. The legislation, which would allow people with disabilities to save money without jeopardizing eligibility for government benefits, now heads to the Senate. (Thinkstock)

The U.S. House of Representatives has voted to approve a bill that would establish a new way for people with disabilities to save money without risking their government benefits.

The Achieving a Better Life Experience, or ABLE, Act passed by a vote of 404 to 17 on Wednesday. The measure will now move to the Senate.

Under current rules, many individuals with disabilities can have no more than $2,000 in assets in order to qualify for needed government benefits. The ABLE Act would dramatically alter that scenario, allowing people with disabilities to establish special accounts at any financial institution where they could save up to $14,000 annually under current gift-tax limitations.

See More at :  http://www.disabilityscoop.com/2014/12/04/house-approves-accounts/19891/