Parents saving for college tuition can put money in a special
tax-advantaged savings fund and now Congress is considering creating a
similar fund for parents of children with disabilities.
"Instead of the account paying for college tuition, it helps cover expenses related to an individual's disability and that individual's long term care," said Sen. Chuck Schumer, a New York Democrat.
The Achieving a Better Life Experience Act (ABLE) would allow families to create accounts similar to 529 education savings plans to set aside money for education, medical care, support services, housing and transportation for individuals with disabilities.
More than 28,000 people in the Capital Region, including 1,440 children with autism, would be eligible for the fund, Schumer said.
Eligibility for the fund would be extended to people who qualify for supplemental security income through Social Security, a benefit for disabled adults and children who have limited income and resources.
It also would be open to people who have medically determined physical or mental illness that severely limits their ability to function and will last for more than one year.
"It's a great idea," said Jeffrey A. Covington, director of residential services for the Catholic Charities Disabilities Services in Albany. "It sounds like it will allow families a certain amount of flexibility in providing services for a loved one."
Anyone can contribute to an account, including family and friends. Any interest accrued would not be taxed and withdrawals from the account for qualifying expenses would not be taxed.
Qualifying expenses include school tuition from preschool to postsecondary education, transportation costs, rent, mortgage payments, job training, adaptive equipment and premiums for health insurance.
Schumer said the impact of the accounts on the government's tax coffers has not yet been calculated. The bill, which Schumer supports, was introduced by Sen. Bob Casey, D-Pa.
The savings account could save a family thousands of dollars over the lifetime of the disabled person, Schumer said.
"These plans reduce the overall tax burden for individuals and their families, making care significantly more affordable," he said.
Read more: http://www.timesunion.com/local/article/Saving-plan-for-disabled-people-3547355.php#ixzz1uXt5wnsQ
"Instead of the account paying for college tuition, it helps cover expenses related to an individual's disability and that individual's long term care," said Sen. Chuck Schumer, a New York Democrat.
The Achieving a Better Life Experience Act (ABLE) would allow families to create accounts similar to 529 education savings plans to set aside money for education, medical care, support services, housing and transportation for individuals with disabilities.
More than 28,000 people in the Capital Region, including 1,440 children with autism, would be eligible for the fund, Schumer said.
Eligibility for the fund would be extended to people who qualify for supplemental security income through Social Security, a benefit for disabled adults and children who have limited income and resources.
It also would be open to people who have medically determined physical or mental illness that severely limits their ability to function and will last for more than one year.
"It's a great idea," said Jeffrey A. Covington, director of residential services for the Catholic Charities Disabilities Services in Albany. "It sounds like it will allow families a certain amount of flexibility in providing services for a loved one."
Anyone can contribute to an account, including family and friends. Any interest accrued would not be taxed and withdrawals from the account for qualifying expenses would not be taxed.
Qualifying expenses include school tuition from preschool to postsecondary education, transportation costs, rent, mortgage payments, job training, adaptive equipment and premiums for health insurance.
Schumer said the impact of the accounts on the government's tax coffers has not yet been calculated. The bill, which Schumer supports, was introduced by Sen. Bob Casey, D-Pa.
The savings account could save a family thousands of dollars over the lifetime of the disabled person, Schumer said.
"These plans reduce the overall tax burden for individuals and their families, making care significantly more affordable," he said.
Read more: http://www.timesunion.com/local/article/Saving-plan-for-disabled-people-3547355.php#ixzz1uXt5wnsQ
No comments:
Post a Comment