Title
Calling upon the Congress of the United States to enact the ABLE Age Adjustment Act, offered by Senator Bob Casey, which would increase from 26 to 46 the age threshold at which individuals with disabilities could save into tax-favored accounts to pay for disability-related expenses.
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WHEREAS, Established under the Achieving a Better Life Experience Act of 2014, Achieving a Better Life Experience (“ABLE”) accounts are tax-free savings vehicles for people with disabilities, serving a purpose similar to trusts set up to help children with disabilities, but without disqualifying them from government benefits or means-tested programs, like HUD housing assistance and Supplemental Nutritional Assistance Program (“SNAP”), also known as ‘food stamps’, among other resources; and
WHEREAS, The purposes of the original legislation were to “(1) encourage and assist individuals and families in saving private funds for the purpose of supporting individuals with disabilities to maintain health, independence, and quality of life; and (2) provide secure funding for disability-related expenses of beneficiaries with disabilities that will supplement, but not supplant, benefits provided through private insurance, title XVI (Supplemental Security Income) and title XIX (Medicaid) of the Social Security Act, the beneficiary's employment, and other sources”; and
WHEREAS, Under current law, someone with a disability the onset date of which is before their 26th birthday can open ABLE accounts; and
WHEREAS, In addition to being exempt from federal taxation, contributions can be deducted on state income tax returns, with Pennsylvanians able to save as much as $100,000, though those limits vary by state; and
WHEREAS, Of the roughly 93,000 ABLE accounts - containing over $759 million in savings - opened across the United States since their debut in 2017, the Pennsylvania Treasurer has estimated that Pennsylvanians opened about 5,300 accounts, with about $50 million saved; and
WHEREAS, To empower the estimated six million additional Americans whose disabilities arise between the ages of 26 and 46, Pennsylvania’s senior Senator Bob Casey introduced S.331, the ABLE Age Adjustment Act, along with 12 sponsors from both parties, including our junior Senator Pat Toomey, to simply change the age limit accordingly; and
WHEREAS, Representative Tony Cardenas of California offered the companion measure, H.R.1219, with 68 co-sponsors to date; and
WHEREAS, S.331 has been referred to the Senate Finance Committee, where Sen. Casey wants the new ABLE bill to be included as part of a bipartisan retirement package being considered, expected to be debated by the Congress later this year; and
WHEREAS, In the absence of universal, comprehensive social supports, people with disabilities and their relations should be able to save for foreseeable care without endangering their access to social services, which would be facilitated by the ABLE Age Adjustment Act; now, therefore, be it
RESOLVED, that the Council of the City of Philadelphia, Hereby calls upon the Congress of the United States to enact the ABLE Age Adjustment Act, offered by Senator Bob Casey, which would increase from 26 to 46 the age threshold at which individuals with disabilities could save into tax-favored accounts to pay for disability-related expenses.
FURTHER RESOLVED, That an Engrossed copy of this resolution be presented to the Congress as evidence of the sincere sentiments of this legislative body.
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