During the 2015 State legislative session, the Office of the State Treasurer worked with Vermont stakeholders, State agencies and departments, and legislators to draft and pass Vermont's enabling legislation of the federal ABLE Act. The Vermont Achieving a Better Life Experience (ABLE) Savings Program is intended to ease financial strains faced by individuals with disabilities by making federal tax-free savings accounts available to cover qualified expenses such as education, housing, and transportation. American families currently enjoy tax incentives to save for significant future expenses such as college, retirement, and other life events. The ABLE Act empowers disabled individuals and their families to save their own money in a 529A (or ABLE) account for the purpose of maintaining health and independence.
What is a 529-ABLE Account?
- The ABLE National Resource Center
- The ABLE National Resource Center "10 Things You Should Know"
- Achieving a Better Life Experience (ABLE) Act Description
A 529-ABLE account or 529A, allows for an account within Section 529 of the Internal Revenue Code of 1986, and is a (Federal) tax-free savings vehicle operated by a state for disability-related expenses that will supplement, but not supplant, benefits provided through private insurances, the Medicaid program, the supplemental security income program, the beneficiary’s employment, and other sources. Contributions are in federal after-tax dollars, but earnings would grow tax-free just like with 529 college savings accounts (Roth style). Withdrawals must be for qualified expenses.
VermontABLE launched on February 22, 2017. Vermonters can sign up for VermontABLE at VermontABLE.com.
See the VermontABLE launch press release here (February 2017): State Treasurer Beth Pearce Launches VermontABLE Savings Initiative for Vermonters with Disabilities
See the VermontABLE press release here (November 2016): VermontABLE Savings Initiative
- January 2017 Vermont ABLE Task Force Legislative Report - January 14, 2017
- Vermont Developmental Disabilites Council ABLE Webinar - November 16, 2016
- August 2016 Vermont ABLE Task Force Update and Timeline
- May 2016 Vermont ABLE Task Force Update
- January 2016 Vermont ABLE Task Force Legislative Report
- Duties and Charge of the Vermont ABLE Task Force
- Vermont ABLE Task Force Handout
- ABLE Comment Letter to IRS from Vermont, Illinois and Rhode Island - September 21, 2015
- Vermont Delegation Letter to the IRS regarding the ABLE program - October 2, 2015
Agenda & Meeting Notes
The preliminary IRS ABLE regulations and guidance for state implementation were released on June 19, 2015. Read the proposed regulations.These preliminary regulations were released by the IRS with the intention of soliciting public comment. Public comments were due on September 21, 2015. The IRS public hearing for ABLE regulations occurred on October 14, 2015. A certified transcript from the public hearing is posted here.