Texas Comptroller of Public Accounts
FOR IMMEDIATE RELEASE
July 24, 2020
(AUSTIN) — Texas Comptroller Glenn Hegar is highlighting the 30th anniversary of the passage of the Americans with Disabilities Act (ADA) and reminding families about the Texas Achieving a Better Life Experience (Texas ABLE®) Program, established to help individuals with disabilities and their families save money to pay for disability-related expenses critical to maintaining one’s health, independence and quality of life.
Signed into law on July 26, 1990, the ADA prohibits discrimination on the basis of disability in employment, state and local government, public accommodations, commercial facilities, transportation and telecommunications.
“The ADA represents landmark legislation that has protected the rights of millions of disabled Americans,” Hegar said. “It laid the foundation for programs such as Texas ABLE, which further helps remove barriers for people with disabilities. Texas ABLE has been a game changer, and our office is proud to be part of this important program that creates a path for individuals with disabilities to save and achieve a better life experience.”
Established by the Texas Legislature and administered by the Texas Prepaid Higher Education Tuition Board through the Texas Comptroller’s office, the Texas ABLE Program allows Texans with disabilities to save for the future in tax-advantaged accounts while preserving their eligibility for important government benefits such as Supplemental Security Income (SSI) and Medicaid.
The program is open to eligible Texans who experience the onset of a disability before the age of 26 and are entitled to SSI or Social Security Disability Insurance benefits, or have a condition on the Social Security Administration’s list of Compassionate Allowances Conditions or a physician’s diagnosis of a qualifying condition.
Through "Texas ABLE’s special eGift tool, anyone — the individual with the disability, family members, friends or even a special needs trust — can make direct contributions to the account. Accounts can be established by the beneficiary of the account or by someone with legal authority to act on his or her behalf.
Any earnings on ABLE account funds are not subject to federal income tax if used for qualified disability expenses. Each eligible individual can have only one ABLE account. For more information on Texas ABLE, including associated fees and contribution limitations, or to open an account, visit TexasABLE.org or call 844-4TX-ABLE (844-489-2253).
Legislation pending before Congress, the ABLE Age Adjustment Act, would amend Section 529A(e) of the Internal Revenue Code to increase the eligibility threshold for ABLE accounts for onset of disability from before age 26 to before age 46. That change would expand eligibility for ABLE to an estimated 6 million additional Americans, including many veterans whose disability may have occurred after the age of 25.
Other than FDIC insurance for the Bank Savings Account Option, accounts are not insured or guaranteed and could lose money (including the principal invested). Before investing in the Program, investors should carefully consider the federal and state tax consequences, possible negative effects on eligibility for federal or state benefits, possible Medicaid recapture, investment objectives, risks, administrative fees, service and other charges and expenses associated with the Program. The Program Disclosure Statement and Participation Agreement contains this and other information about the Program and may be obtained by visiting TexasABLE.org or by calling 844-4TX-ABLE (844-489-2253). Investors should read the Program Disclosure Statement and Participation Agreement carefully before investing.