Senate Finance Hearing on the ABLE Act
Senate Committee on Finance Subcommittee on
Taxation and IRS Oversight
Saving for an Uncertain Future: How the ABLE Act can
Help People with Disabilities and their Families
July 23, 2014
Key Topics & Takeaways
- Efforts to pass the ABLE Act this Congress are being led in the House by Rep. Ander Crenshaw (R-Fla.), Rep. Cathy McMorris Rodgers (R-Wash.) Rep. Pete Sessions (R-Texas), and Rep. Chris Van Hollen (D-Md.). The Senate bill is sponsored by Sens. Robert Casey (D-Pa.) and Richard Burr (R-N.C.).
- According to McMorris Rodgers, “As the mom of a son with Down syndrome, I see firsthand how federal policies limit-not expand- opportunities for those with disabilities. And the ABLE Act will change that.”
- The Congressional Budget Office (CBO) and Joint Committee on Taxation (JCT) scored on S. 313, the Achieving a Better Life Experience (ABLE) Act of 2013.
-
- CBO estimates that enacting S. 313 would increase direct spending by $17.5 billion over the 2015-2024 period.
- JCT estimates that enacting S. 313 would decrease revenues by $1.7 billion over the 2015-2024 period.
Witnesses
- The Honorable Cathy McMorris Rodgers, Member (WA-5), United States House of Representatives, Spokane, WA
- Ms. Sara C. Wolff, Self-Advocate and Board Member, National Down Syndrome Society, Moscow, PA
- Mr. Robert D’Amelio, Volunteer Advocate, Autism Speaks, Charlotte, NC
- Mr. Chase Alston Phillips, Financial Advisor, Alexandria, VA
Opening Remarks
In his opening remarks, Chairman Robert Casey (D-Pa.) urged that individuals with disabilities should be able to save on an even playing field. The ABLE Act, he said, would build on 529 accounts to allow families to similarly save tax free for qualified disability expenses such as education, housing, transportation, and health care. Casey added that other sources of income would be supplemented by the ABLE accounts as created in the legislation. With broad bipartisan support, Casey noted that the ABLE Act has 75 cosponsors in the Senate and 366 cosponsors in the House and is an affirmation that people with disabilities can live a life of opportunity. In his view, the legislation reflects the hard work of families and disability advocates. Casey called on his colleagues to pass this important legislation when Congress returns from the August recess.
In his opening remarks, Ranking Member Enzi (R-Wyo.) highlighted that the ABLE Act is “more than bipartisan” and would help meet the challenges to maintain health and independence for individuals with disabilities. He noted that other types of services, if combined with the account created from the ABLE Act, would lead to a better quality of life and increase the opportunities available to those with disabilities.
Senator Richard Burr (R-N.C.) emphasized that the ABLE Act has “unprecedented bipartisan support” and questioned why a member of Congress would not support this legislation. He reminded his colleagues that they have worked on this legislation for over eight years.
Witness Testimony
In her testimony, Wolff proudly stated that she has traveled to DC countless times to advocate for the ABLE Act on behalf of the National Down Syndrome Society. She discussed the hardship of her mother’s passing last year combined with the $2,000 cap on her own assets as a person with disabilities in order to qualify for Supplemental Security Income (SSI), Medicare, and Medicaid. With this in mind, she called on Congress to pass the ABLE Act in order to plan for her future. She explained that she works two part time jobs and cannot earn more than $700 per month to maintain government benefits as a person with disabilities. She clarified that she is “not asking for a handout” and “not asking for a new program,” but instead asking for an opportunity to use the same tools that others have access to today in order to achieve hopes, dreams, and aspirations.
In her testimony, McMorris Rodgers emphasized that the ABLE Act is an important piece of legislation to ensure that those with disabilities have the opportunity for a better life through the 529 account. In her opinion, current law is outdated and encourages both dependency and spending down of assets. She shared her story as a mother of a child with Down syndrome and expressed concern that the federal policies in place today do not encourage her son to save for his future or live life to his fullest potential.
In his testimony, D’Amelio highlighted that he has advocated for autism since 2001 and that his “family is an autism family” with both of his sons affected by autism. He noted that one in 35 boys in North Carolina have autism and lamented that the current 529 plans fall short for autism families who do not choose to go to college. The ABLE Act, he said, would allow families to make their future more secure for their children and gain financial security.
In his testimony, Phillips said the ABLE Act allows for saving for a down payment on a home or a deposit for an apartment that is not otherwise possible. With the current restrictions on assets, Phillips emphasized that individuals are chained to poverty and even special needs trusts may not distribute money for basic items such as food and shelter. As a financial advisor and sufferer of spina bifida, Phillips supports the ABLE Act because it allows individuals to save in tax sheltered savings accounts in a way that is not counted against the individual for the purposes of SSI, Medicare, and Medicaid.
Question and Answer
Casey asked Wolff how her life would change if the ABLE Act were passed and signed into law. Wolff responded that she would no longer have to limit her income to $700 per month.
Enzi asked Phillips if limits to the ABLE Act exist that would disqualify an individual from SSI and Medicaid. Phillips responded that a $100,000 cap on the ABLE account would not influence Medicaid and that if the parents pass away then the remainder of the ABLE account is subject to taxation.
Burr asked D’Amelio what worries him most about his sons’ futures. D’Amelio said that he worries that the financial obligations to his daughter will not be easy as the caregiver and the medical bills they have already accumulated led them to declaring personal bankruptcy.
For more information on this meeting and to view an archived webcast, please click here.
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Senate Committee on Finance Subcommittee on
Taxation and IRS Oversight
Saving for an Uncertain Future: How the ABLE Act can
Help People with Disabilities and their Families
July 23, 2014
Key Topics & Takeaways
- Efforts to pass the ABLE Act this Congress are being led in the House by Rep. Ander Crenshaw (R-Fla.), Rep. Cathy McMorris Rodgers (R-Wash.) Rep. Pete Sessions (R-Texas), and Rep. Chris Van Hollen (D-Md.). The Senate bill is sponsored by Sens. Robert Casey (D-Pa.) and Richard Burr (R-N.C.).
- According to McMorris Rodgers, “As the mom of a son with Down syndrome, I see firsthand how federal policies limit-not expand- opportunities for those with disabilities. And the ABLE Act will change that.”
- The Congressional Budget Office (CBO) and Joint Committee on Taxation (JCT) scored on S. 313, the Achieving a Better Life Experience (ABLE) Act of 2013.
-
- CBO estimates that enacting S. 313 would increase direct spending by $17.5 billion over the 2015-2024 period.
- JCT estimates that enacting S. 313 would decrease revenues by $1.7 billion over the 2015-2024 period.
Witnesses
- The Honorable Cathy McMorris Rodgers, Member (WA-5), United States House of Representatives, Spokane, WA
- Ms. Sara C. Wolff, Self-Advocate and Board Member, National Down Syndrome Society, Moscow, PA
- Mr. Robert D’Amelio, Volunteer Advocate, Autism Speaks, Charlotte, NC
- Mr. Chase Alston Phillips, Financial Advisor, Alexandria, VA
Opening Remarks
In his opening remarks, Chairman Robert Casey (D-Pa.) urged that individuals with disabilities should be able to save on an even playing field. The ABLE Act, he said, would build on 529 accounts to allow families to similarly save tax free for qualified disability expenses such as education, housing, transportation, and health care. Casey added that other sources of income would be supplemented by the ABLE accounts as created in the legislation. With broad bipartisan support, Casey noted that the ABLE Act has 75 cosponsors in the Senate and 366 cosponsors in the House and is an affirmation that people with disabilities can live a life of opportunity. In his view, the legislation reflects the hard work of families and disability advocates. Casey called on his colleagues to pass this important legislation when Congress returns from the August recess.
In his opening remarks, Ranking Member Enzi (R-Wyo.) highlighted that the ABLE Act is “more than bipartisan” and would help meet the challenges to maintain health and independence for individuals with disabilities. He noted that other types of services, if combined with the account created from the ABLE Act, would lead to a better quality of life and increase the opportunities available to those with disabilities.
Senator Richard Burr (R-N.C.) emphasized that the ABLE Act has “unprecedented bipartisan support” and questioned why a member of Congress would not support this legislation. He reminded his colleagues that they have worked on this legislation for over eight years.
Witness Testimony
In her testimony, Wolff proudly stated that she has traveled to DC countless times to advocate for the ABLE Act on behalf of the National Down Syndrome Society. She discussed the hardship of her mother’s passing last year combined with the $2,000 cap on her own assets as a person with disabilities in order to qualify for Supplemental Security Income (SSI), Medicare, and Medicaid. With this in mind, she called on Congress to pass the ABLE Act in order to plan for her future. She explained that she works two part time jobs and cannot earn more than $700 per month to maintain government benefits as a person with disabilities. She clarified that she is “not asking for a handout” and “not asking for a new program,” but instead asking for an opportunity to use the same tools that others have access to today in order to achieve hopes, dreams, and aspirations.
In her testimony, McMorris Rodgers emphasized that the ABLE Act is an important piece of legislation to ensure that those with disabilities have the opportunity for a better life through the 529 account. In her opinion, current law is outdated and encourages both dependency and spending down of assets. She shared her story as a mother of a child with Down syndrome and expressed concern that the federal policies in place today do not encourage her son to save for his future or live life to his fullest potential.
In his testimony, D’Amelio highlighted that he has advocated for autism since 2001 and that his “family is an autism family” with both of his sons affected by autism. He noted that one in 35 boys in North Carolina have autism and lamented that the current 529 plans fall short for autism families who do not choose to go to college. The ABLE Act, he said, would allow families to make their future more secure for their children and gain financial security.
In his testimony, Phillips said the ABLE Act allows for saving for a down payment on a home or a deposit for an apartment that is not otherwise possible. With the current restrictions on assets, Phillips emphasized that individuals are chained to poverty and even special needs trusts may not distribute money for basic items such as food and shelter. As a financial advisor and sufferer of spina bifida, Phillips supports the ABLE Act because it allows individuals to save in tax sheltered savings accounts in a way that is not counted against the individual for the purposes of SSI, Medicare, and Medicaid.
Question and Answer
Casey asked Wolff how her life would change if the ABLE Act were passed and signed into law. Wolff responded that she would no longer have to limit her income to $700 per month.
Enzi asked Phillips if limits to the ABLE Act exist that would disqualify an individual from SSI and Medicaid. Phillips responded that a $100,000 cap on the ABLE account would not influence Medicaid and that if the parents pass away then the remainder of the ABLE account is subject to taxation.
Burr asked D’Amelio what worries him most about his sons’ futures. D’Amelio said that he worries that the financial obligations to his daughter will not be easy as the caregiver and the medical bills they have already accumulated led them to declaring personal bankruptcy.
For more information on this meeting and to view an archived webcast, please click here.