Bi-Partisan Bill to Create Tax-Free Savings for Californians with Disabilities
SACRAMENTO – This weekend Governor Brown signed two bills implementing the California ABLE Act. Starting January 1st, 2016, individuals with disabilities and their families will be able to save money tax free, and without fear of losing eligibility to a variety of public assistance programs.
Assemblymember Jacqui Irwin (D-Thousand Oaks) and Senator Fran Pavley (D-Agoura Hills) introduced Assembly Bill 449 and Senate Bill 324 to help people with disabilities save for the future. Together the bills create the Achieving a Better Life Experience (ABLE) Act, which allows people with disabilities to open special accounts where they can save without risking eligibility for Social Security and other government programs. ABLE accounts are similar to the widely used 529 education savings plan but would be used for disability related expenses.