ABLE Basics

Signed into law in December 2014, the Stephen Beck, Jr. Achieving a Better Life Experience (ABLE) Act authorized states to establish tax-advantaged savings programs for individuals with disabilities.

In 2015, Virginia became the first state to approve and pass ABLE legislation following the federal ABLE Act. This milestone was especially meaningful because the original idea for ABLE accounts was conceived by a group of Virginia parents seeking better financial options for their children.

The state legislation laid the foundation for what would become the national ABLEnow and ABLEAmerica programs, giving Eligible Individuals with disabilities and their families a new  opportunity to save, invest and build financial independence.

The Achieving a Better Life Experience (ABLE) Act created Section 529A of the Internal Revenue Code. This is the federal legal framework that establishes the specific rules and requirements of an ABLE account.

Achieving a Better Life Experience (ABLE) accounts are tax-advantaged savings accounts for Eligible Individuals with disabilities.

Millions of individuals with disabilities and their families depend on public benefits that provide essential support for income, health care, food and housing. Many of these programs have strict resource or asset limits, which can make it challenging to save money without risking eligibility.

The ABLE Act recognizes the significant and ongoing costs associated with living with a disability. For the first time, Eligible Individuals can save and pay for Qualified Disability Expenses with a tax-advantaged ABLE account without affecting eligibility for certain means-tested benefits, including Medicaid and Supplemental Security Income (SSI).

ABLEnow is a national, direct-sold ABLE savings program offered by the Commonwealth of Virginia.

The program is administered by Commonwealth Savers, an independent state agency responsible for Virginia’s state-facilitated savings programs, including those for disability, education and retirement savings.

ABLEnow is supported by private-sector financial firms, with Ascensus serving as the program’s recordkeeper.

ABLEAmerica is the national, advisor-sold ABLE savings program offered through a partnership between Commonwealth Savers and Capital Group, home of American Funds.