Bipartisan legislation recently introduced in the U.S. House of Representatives would expand financial opportunities and strengthen workplace opportunities for Americans with disabilities.
The ABLE Employment Flexibility Act would enable employers to make tax-free contributions to ABLE accounts instead of traditional 401(k) accounts. ABLE accounts, designed for people with disabilities, allow people to save money without affecting federal assistance program eligibility.
Strict federal asset limits from programs such as Supplemental Security Income can mean that contributions to 401(k) accounts could unintentionally disqualify people from benefits.
U.S. Reps. Sharice Davids (D-KS) and Brian Fitzpatrick (R-PA) introduced the bill which has the support of the National Down Syndrome Congress.
“Individuals with disabilities deserve the freedom to access employee benefits and save for retirement without risking their eligibility for critical federal programs,” Fitzpatrick said. “By eliminating unnecessary barriers, our bipartisan legislation takes a bold step in protecting essential supports like the ABLE program while empowering employees with disabilities to achieve financial security and thrive in the workplace. This is about breaking down barriers and ensuring equal opportunity for all.”
The disabled are two times more likely to live in poverty compared to people without disabilities.
The ABLE program has helped more than 170,000 disabled save an average of $11,186.