Public social services programs: qualified ABLE Program accounts.
Impact
The repeal of the $100,000 cap is significant for individuals with disabilities who rely on ABLE accounts for their financial stability. By allowing individuals to save more without risking their eligibility for important social services, this bill would facilitate greater financial independence among persons with disabilities. These changes would empower families to support their loved ones, knowing they can save adequately for their future medical and living expenses.
Summary
Assembly Bill 2253 (AB2253), introduced by Assembly Member Irwin, aims to amend Section 4880 of the Welfare and Institutions Code regarding the California ABLE program. This bill seeks to eliminate the $100,000 limitation on contributions to, and distributions from, ABLE accounts. The Legislative Counsel's Digest highlights that under existing federal law—the Stephen Beck, Jr. Achieving a Better Life Experience Act of 2014—ABLE accounts allow individuals with disabilities to save money in a tax-advantaged manner to support their living, health, and quality of life without jeopardizing eligibility for means-tested state or local programs.
Contention
While the bill has supporters who argue it enhances economic opportunities and personal autonomy for individuals with disabilities, there may be points of contention. Critics could argue about the implications of such changes on state and local budgets, particularly regarding means-tested social services. They might raise concerns about the long-term sustainability of public programs if more individuals exceed the previous limitations and how this could impact access to essential social services.