O’Dea Supports Measure Creating ABLE Accounts for Disabled
HARTFORD –State Representative Tom O’Dea (R-125) put his support behind a measure before the House today that creates tax-free savings accounts for state residents who live with disabilities. The bill, HB 6738, establishes a state program mirroring the federal ABLE (Achieving a Better Life Experience) Act.
“This is an important measure which will provide meaningful assistance to state residents who contend with disabilities, and the families who support them,” said Rep. O’Dea. “It will allow them to save money for important services tax-free.”
This bill requires the state treasurer to establish a qualified ABLE program, as permitted by federal law, and administer individual accounts to empower eligible individuals and families to save private funds to pay for qualifying expenses related to disability or blindness.
It creates the Connecticut ABLE Trust, administered by the state treasurer, to receive and hold funds intended for ABLE accounts. It exempts money in the trust and interest earnings on it from state and local taxation while in the trust and requires the treasurer to ensure that funds are kept exempt from federal taxation pursuant to federal law.
Under the bill, funds invested in, contributed to, or distributed from an ABLE account must be disregarded when determining an individual’s eligibility for assistance under federally funded assistance or benefit programs.
The bill also prohibits the state’s public colleges and universities from considering funds invested in ABLE accounts when determining eligibility for need-based institutional aid. In general, institutional financial aid consists of aid originating from the institution and excludes federal or state financial aid awarded to students.
“This will provide an important new option for the state’s disabled population to pay for services without jeopardizing the current set of services they qualify for,” said Rep. O’Dea.
The bill passed the House unanimously and now heads to the State Senate for action there. This session of the Connecticut General Assembly concludes at midnight, June 3rd.