Wisconsin Assembly Bill AB121

Wisconsin 2023-2024 Regular Session

• Introduced: 3/24/23
• Refer: 3/24/23
• Report Pass: 10/19/23
• Refer: 10/19/23
• Failed: 4/15/24

Caption

Requiring the Department of Financial Institutions to implement a section 529A ABLE savings account program and granting rule-making authority. (FE)

Impact

The implementation of ABLE accounts within Wisconsin is expected to enhance financial independence for individuals with disabilities, facilitating better management of their expenses without losing government assistance. This creates a significant shift in how financial planning and savings can be approached for this demographic. Currently, such accounts could only be established in other states, limiting access. Thus, AB121 aims to bridge this gap and provide local opportunities for account management.

Summary

Assembly Bill 121 mandates that the Department of Financial Institutions (DFI) implement a qualified ABLE program as per section 529A of the Internal Revenue Code. The purpose of this program is to establish tax-exempt savings accounts for individuals with disabilities, allowing them to save and pay for qualified expenses such as education, housing, and transportation without jeopardizing their government benefits. This bill adds provisions in state law that were previously absent, enabling residents to benefit from these savings accounts directly through state administration.

Contention

Notably, the bill navigates between the need for state oversight and the potential complexity of establishing partnerships with other states or entities that already manage ABLE accounts. Discussions surrounding the bill may include concerns about administrative efficiency and the adequacy of resources to support the program effectively. Additionally, the transition to administering these accounts might raise questions regarding the confidentiality and security of personal financial information, which the bill seeks to uphold.