Zawistowski Co-Sponsors “ABLE” Legislation
HARTFORD — Parents will be able to save money in tax sheltered accounts to pay for the long term needs of their children with intellectual and developmental disabilities through bipartisan legislation co-sponsored by state Rep. Tami Zawistowski.
The legislation (H.B. 6738) approved Tuesday in the House of Representatives enables parents to create “ABLE” accounts, a reference to the federal “Achieving a Better Life Experience” act signed into law late last year. Such accounts allow parents to save money without risking eligibility for government programs. Connecticut parents need the legislature to authorize a state program.
“Peace of mind—that’s what this bill provides parents who every day are wracked by concern over what will become of their children when they can no longer serve as caregivers,” said Zawistowski, who represents Suffield, East Granby and part of Windsor. “This is a common sense proposal, one that will have a great impact on a population that requires our help on this issue.”
An ABLE account is similar to the state-sponsored college savings accounts used by so many Connecticut families. The money would be used for qualified expenses such as housing, education or transportation. Parents will be allowed to save up to $100,000 (post tax) in the account without affecting a child’s eligibility for federal assistance. Interest earnings will be exempt from taxation.
The legislation awaits action in the state senate.