This evening, the House of Representatives passed the FY 2015 Omnibus Appropriations bill. This spending bill contains a number of important measures that fulfill the people’s priorities, including protecting jobs, stopping wasteful spending, reining in government overreach, and funding our national security.
While many American families plan for the future by opening tax-advantaged 529 savings accounts to set aside funds for future college costs, families with children with disabilities lose federal benefits if they opt to make the same choice. The act would establish tax-free so-called ABLE accounts — a flexible savings tool similar to what other Americans have through college savings accounts, health savings accounts, and individual retirement accounts. People with disabilities would be able to save up to $14,000 annually at any financial institution. Families would also be able to use the account to cover medical expenses not covered by private insurance or Medicaid.
The legislation would amend Section 529 of the Internal Revenue Service Code to allow use of tax-free savings accounts for individuals with disabilities. The bill, would ease financial strains faced by individuals with disabilities by making tax-free savings accounts available to cover qualified expenses such as education, housing, medical, and transportation.
I am often reminded of our blessings through the doxology and hymn, “Praise God from Whom all blessings flow.” I join you in giving thanks for the incredible blessing of being an American.