New legislation seeks to facilitate savings for disabled individuals.

• ABLE accounts provide a tax-advantaged way for disabled individuals to save money.
• Despite Congress establishing these accounts a decade ago, numerous eligible individuals continue to not utilize them.
• New congressional proposals aim to increase awareness and simplify the process of contributing to savings accounts.

A decade ago, Congress passed legislation to establish savings accounts for individuals with disabilities.

According to Sen. Bob Casey, D-Pa., who chairs the Special Committee on Aging, only a small fraction of the 8 million Americans who are eligible for ABLE accounts are utilizing them.

On Thursday, the senator intends to present several new bills that will enable eligible individuals to increase their savings in ABLE accounts, while simultaneously increasing public awareness of their potential as a savings option for the disability community.

Disabled individuals can save money outside of federal-assistance program asset limits and take advantage of certain tax benefits with ABLE accounts.

Qualified expenses in ABLE accounts are tax-free, and the funds grow tax-deferred.

In 2026, an additional 6 million people may become eligible for ABLE accounts as the eligibility criteria will change from being disabled before age 26 to before age 46.

Over $1.8 million has been saved by more than 171,000 people with disabilities through ABLE accounts, according to Casey.

Some benefits may change as the SSI program reaches its 50th anniversary, and the Social Security Administration is expanding access to certain benefits.

Congress should pass more reforms to simplify saving in ABLE accounts, as advocated by Casey.

He introduced a bill last year, known as the ABLE MATCH Act, which aimed to establish a federal dollar-for-dollar match to assist low-income disabled individuals in saving funds in their accounts.

Thomas Foley, executive director of the National Disability Institute, stated that disability affects every family, regardless of political affiliation.

Foley stated that they are optimistic that Senator Casey and his bipartisan colleagues will acknowledge that this action is a step towards enabling individuals with disabilities to achieve greater independence and financial stability.

On Thursday, three new bills will be introduced in Congress, detailing their respective actions.

Let employers contribute to ABLE accounts

Individuals with disabilities may not be able to utilize 401(k) plan matches due to the risk of their funds being counted against their asset limits for federal benefits programs.

Casey is introducing a bill, the ABLE Employment Flexibility Act, which would allow employers to contribute to an employee's ABLE account rather than their 401(k) account.

An employee could receive matching contributions without jeopardizing federal benefits, and the money could be used for retirement.

"Saving for retirement is a great way to secure one's financial future, especially for disabled individuals who qualify for ABLE accounts," Foley stated.

Allow direct deposits into ABLE accounts

The ABLE Direct Deposit Act would allow employers and government programs to make direct deposits to ABLE accounts.

Foley stated that enabling direct deposit for ABLE accounts would facilitate participation for individuals with disabilities.

Help inform people about ABLE programs

The ABLE Awareness Act aims to educate more people about ABLE accounts, which many eligible individuals have not yet opened.

Eligible individuals must be informed about ABLE accounts by both federal and state agencies when they enroll in specific benefits programs, as per the bill.

The bill proposes a grant program to promote ABLE programs through advertising in the media and on billboards, with a budget of $50 million per year for four years.