H.R 1205 ABLE Act of 2009

The ABLE act was introduced to the legislature on February 26, 2009. This bill allows people with a disability, and their families, to save money in an ABLE account. The principal in this account would accumulate tax free and be tax exempt when used to pay a "qualified expense". A qualifying expense includes but is not limited to education, housing, transportation, employment support, medical care, and certain life necessities. The ABLE act defines "individual with a disability" as an individual who is eligible to receive certain supplemental security income benefits under the Social Security Act. The ABLE Act would allow individual taxpayers a deduction for contributions to the account, and a refundable tax credit is currently being considered. If the bill passes these ABLE accounts would not affect eligibility for Medicaid benefits and for purposes of determining eligibility for other means-tested federal programs. For more information visit Congress’ site.