Lansing, Michigan (WLNS) — Legislation to update the MiABLE Disability Savings Program and allow for more spending flexibility passed the governor’s desk on Thursday.
An ABLE account enables people with disabilities and their families to save money without jeopardizing their eligibility for government benefits, which are frequently limited to those with small savings, sometimes as little as $2,000, according to the state.
These accounts must be used for what the state refers to as “qualified disability expenses” that help an individual maintain or improve their health, independence, or quality of life as a result of their disability. These qualified expenses include things like:
- Education
- Housing
- Transportation
- Employment training and support
- Assistive technology and personal support services
- Health care, illness prevention, and overall wellness
- Financial management and administrative services
- Legal fees; expenses for oversight and monitoring
- Funeral and burial expenses
However, House Bill 5781 would allow for tax-free rollovers from 529 educational plans to ABLE accounts, giving these funds more flexibility in how they are used. Legislators claim that this bill will make 500,000 more Michigan residents eligible for MiABLE.
“With this important bill becoming law, 500,000 disabled individuals and their families in Michigan will now be eligible for MiABLE,” said State Representative Sharon MacDonell (D-Troy).
“Now, many disabled individuals and their families will be able to save more for their basic needs, such as healthcare, housing and transportation.”
