June 27, 2022

Volume XII, Number 178

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June 24, 2022

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ABLE Act – Proposed Legislation Will Modify Certain Provisions

An earlier post gave a brief summary of the Achieving a Better Life Experience Act of 2014 or the ABLE Act.  Three different pieces of legislation were introduced on March 17, 2016 that would change some of the provisions of the ABLE Act.  Below is a brief summary of each proposed change.

  1. Current law limits eligibility for the creation of an ABLE account to individuals with disabilities where the disability occurred before turning 26 years old.  H.R. 4813 would increase that age from 26 to 46.

  2. H.R. 4794 would allow for rollovers between 529 accounts and ABLE accounts.

  3. Finally, H.R. 4795 would permit individuals with disabilities to save additional monies to an ABLE account above the annual maximum ($14,000.00) now in place.  Such additional contributions would be allowed for those individuals with disabilities who work and earn income.  The additional contribution would equal the lesser of (a) his or her “compensation…for the taxable year” or (b) “an amount equal to the poverty line for a one-person household, as determined for the calendar year preceding the calendar year in which the taxable year begins.”

© 2022 Odin, Feldman & Pittleman, P.C.National Law Review, Volume VI, Number 83
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About this Author

Catherine F. Schott Murray, Estate Attorney, Odin Feldman
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Catherine F. Schott Murray appreciates that every client’s situation is unique and requires solutions that are adapted to their particular needs, goals, and objectives. She takes the time to carefully listen to her clients and discuss decisions that are not always straightforward, ultimately reaching an appropriate resolution that is pertinent to each client. Catherine is professional, yet compassionate, while carefully explaining complex matters during potentially trying times. She is an active member of the National Academy of Elder Law Attorneys (NAELA) and serves on the Board of...

(703) 218-2175
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