The ABLE Act, which Klobuchar helped champion through Congress, establishes new tax-advantaged savings accounts to allow people with disabilities and their families to save for their futures and help cover important expenses like education, housing, and wellness; Since the bill was signed into law in December, Minnesota and 26 other states have passed legislation to implement the law
Klobuchar sent letter earlier this month urging Treasury Department to implement regulations for the ABLE Act so that states have guidance they need to launch ABLE programs and families can realize law’s benefits
Washington, D.C. – After a push from U.S. Senator Amy Klobuchar (D-MN), the U.S. Department of the Treasury released regulations to give Minnesota and other states the guidance they need to implement the Achieving a Better Life Experience (ABLE) Act. The ABLE Act, which Klobuchar helped champion through Congress, establishes new tax-advantaged savings accounts to allow people with disabilities and their families to save for their futures and help cover important expenses like education, housing, and wellness. Since the bill was signed into law in December, Minnesota and 26 other states have passed legislation to implement the law. Governor Mark Dayton signed the Minnesota bill into law in May so that Minnesotans with disabilities will be able to take advantage of the federal law, open ABLE accounts, and save for the future. Klobuchar sent a bipartisan letter with Senators Bob Casey (D-PA) and Richard Burr (R-NC) earlier this month urging the Treasury Department to issue regulations for the ABLE Act so that states have the guidance they need to launch ABLE programs and families in Minnesota and across the country can realize law’s benefits.
“The ABLE Act will help Americans with disabilities and their families build a better life by giving them the opportunity to plan and save for their future through tax-advantaged savings accounts,” Klobuchar said. “I worked with a bipartisan coalition in Congress to pass legislation to create these savings accounts, and I am happy that our state took action so quickly to ensure that Minnesotans with disabilities can take advantage of the federal law. These regulations will help give states guidance as they implement the ABLE Act, putting Minnesota families a step closer to realizing the benefits of this historic legislation.”
The full text of the letter the senators sent last week is available below:
Dear Secretary Lew:
On December 19, 2014, the Achieving a Better Life Experience Act, or ABLE Act, was signed into law. This historic legislation gives people with disabilities or their families the opportunity to plan and save for the future through the creation of new tax-advantaged savings accounts. The money saved can help cover expenses—including those for education, housing and wellness—without jeopardizing access to other support they count on. We worked with a broad bipartisan coalition to get this bill passed and are hopeful families can realize its benefits soon.
States across the nation have been quick to take steps toward implementing the ABLE Act. Since January, in fact, twenty-five states have passed ABLE implementation legislation. In Pennsylvania and North Carolina, bipartisan legislation has been introduced. In Minnesota, Governor Mark Dayton recently signed into law a bill to establish an ABLE Act program in the state.
We understand the Department of the Treasury is working on implementing regulations for the ABLE Act, which includes developing the specific rules under which an ABLE account may be opened, as well as the scope of eligible expenses. The law provides six months for the completion of these rules. We urge the Treasury Department to develop its rules without delay so that states can have clear guidance moving forward to launch ABLE programs.
Thank you for your attention to this important issue. By working together, we will improve the lives of people living with a disability and help provide peace of mind to their families in our states and across the nation.