New Disability Savings Accounts

SB 777 Passes, Allowing People With Disabilities to Save Money in ABLE Accounts and Not Jeopardize Their Social Security Disability or Medicaid Benefits

Oregon’s Senate Bill 777 passed into law in July, 2015, directing Oregon to create ABLE Act savings accounts so that Oregonian’s with disabilities (who became disabled prior to the age of 26) can have tax free savings accounts to use for disability related expenses.  Additionally, all the funds in an ABLE account will generally not be considered for the supplemental security income (SSI) program, Medicaid, and other federal means-tested benefits,  at least up to $100,000.  This new law is a tremendous boon for people with disabilities, especially those who rely on Medicaid for their health insurance, but who would like to save some money in order to pay for what can be high disability related expenses that are not covered by any public benefit program.  This bill complies with the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014, and allows the ABLE funds to be spent on disability related expenses such as education; housing; transportation; employment training and support; assistive technology and personal support services; health, prevention, and wellness; financial management and administrative services; legal fees; expenses for oversight and monitoring; and funeral and burial expenses, among others.  The accounts will be similar to Oregon’s 529 education saving plans.  ABLE accounts are to be made available to the public no later than January 1, 2017.  The text of SB 77 can be found at https://olis.leg.state.or.us/liz/2015R1/Downloads/MeasureDocument/SB0777/Enrolled