Senator Anthony M. Bucco has introduced legislation that would help families provide financial support for family members with disabilities.
Sen. Anthony M. Bucco has introduced legislation that would make it easier and more advantageous for individuals with disabilities and their families to save money for disability-related expenses. (Pixabay)
Known as the New Jersey Disability Savings Act, Bucco’s bill expands the New Jersey Achieving a Better Life Experience Program (ABLE), adding benefits that would make it easier and more advantageous for individuals with disabilities and their families to save money for disability-related expenses.
“For those living with disabilities and their parents, concerns about money and paying for vital services in the future can be overwhelming,” said Bucco (R-25). “The ABLE program provides a great opportunity to save money for disability-related expenditures without jeopardizing Social Security disability payments or Medicaid. This bill will further enhance the program, encouraging more people to participate in, and benefit from, the opportunity.”
Under Bucco’s bill (S-4100), contributions up to $15,000 per year to a qualifying New Jersey ABLE account are fully deductible on a state tax return. It also provides up to $1,000 in matching funds to incentivize residents to save in the plan, and for every $25,000 saved, the state will contribute $500 to the ABLE account.
“For those who are in a position to put some money aside for the care of a loved one, this is a no-brainer,” Bucco said. “And for families where money is tight, this can help eliminate some sleepless nights and worry about the future. This very helpful savings plan will be further energized by my legislation.”
Under the bill, for qualifying taxpayers, the state’s ABLE program would be as advantageous a savings vehicle as the NJBEST 529 College Savings Program.
Money deposited in an ABLE account can be used for qualifying disability-related expenses, including transportation, housing, education, assistive technology, legal fees, and personal support services. Distributions from the account are not subject to federal tax, provided the distribution does not exceed the individual’s disability-related expenses for the year.
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