The Americans with Disabilities Act was enacted over three decades ago to protect individuals with disabilities from discrimination. However, these individuals still face significant challenges when it comes to building wealth. In an effort to assist disabled individuals with lower incomes in saving money, Senator Bob Casey has introduced a new proposal called the ABLE MATCH Act.
The ABLE MATCH Act aims to create a federal dollar-for-dollar match for new and existing ABLE accounts for individuals earning $28,000 or less per year. ABLE accounts were established in 2014 and allow qualifying individuals to set aside funds for disability-related expenses without losing eligibility for federal programs like Medicaid or Supplemental Security Income. These tax-advantaged accounts offer tax-free withdrawals for qualifying expenses and potential tax-deferred investment gains.
Senator Casey believes that the ABLE program has been a valuable resource for thousands of people with disabilities across the country. However, he acknowledges that there are still many individuals who could benefit from the program but lack the necessary funds to open an account.
The ABLE MATCH Act proposes a 100% federal match for individuals earning $28,000 or less, with the match gradually decreasing for each dollar earned over that threshold. The bill also takes into account inflation and different household situations, such as heads of households or married couples. Its primary objective is to increase enrollment in ABLE accounts for disabled individuals with lower incomes.
The introduction of this proposal has been met with enthusiasm from organizations like the National Disability Institute. The executive director, Thomas Foley, considers it an exciting development that incentivizes a group of people who have historically been discouraged from saving. Foley highlights that individuals with disabilities are twice as likely to live in poverty compared to those without disabilities. The extra costs associated with disability, such as accessible transportation or service dog maintenance, can amount to an additional $28,000 per year.
Foley acknowledges that younger disabled individuals may struggle to save in an ABLE account due to limited disposable income. However, recent legislation has extended the age limit for disability onset to 46, potentially making up to 14 million people eligible for ABLE accounts starting in 2026.
The ABLE MATCH Act represents a significant step towards addressing the financial challenges faced by disabled individuals with lower incomes. By providing a federal match, this proposal aims to make saving more accessible and help improve the financial well-being of disabled Americans.