FOR IMMEDIATE RELEASE March 21, 2016
Olthoff’s legislation helping Hoosiers with disabilities signed into law
STATEHOUSE (March 21, 2016) – Gov. Mike Pence today signed into law legislation authored by State Rep. Julie Olthoff (R-Crown Point) giving individuals with disabilities the ability to open a tax-free savings account.
In 2013, the federal government enacted the Achieving a Better Life Experience (ABLE) Act, allowing people with disabilities to set up tax-free savings accounts that do not impact their means-tested public assistance benefits. The money in these savings accounts may be used to pay for services including medical and dental care, education, employment training, housing and transportation. Indiana is establishing a state ABLE Program under this new law.
“ABLE accounts allow individuals with disabilities to pay for education, housing, assistive technology, and so much more,” Olthoff said. “Under this new law, the account holders can receive up to $14,000 each year from one or more persons until the cap of $100,000 is achieved.”
House Enrolled Act 1407 gives individuals with disabilities the ability to open an account, where they can save up to $14,000 per year without jeopardizing their eligibility for Social Security or other government programs. The Achieving a Better Life Experience (ABLE) funds will help families pay for disability needs. Indiana is enabled to do this by the federal ABLE Act, which was signed into law in 2014.
Olthoff said the ABLE Act provides individuals with disabilities the same types of flexible savings tools that all other Americans have through college savings accounts, health savings accounts and individual retirement accounts.
The new law will take effect on July 1, 2016. For more information on this law visit www.iga.in.gov.
Rep. Olthoff (R-Crown Point) represents portions of Lake County.
Editor’s note: There is a photo attached of the bill signing which took place today in the rotunda at the Indiana Statehouse.