Vermont ABLE (Achieving a Better Life Experience) Task Force

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?

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.

Where is Vermont in the ABLE Process?

The State Treasurer's Office reached an agreement in November 2016 with a partner State. Details of that agreement and the VT-ABLE plan will be detailed in a report to the General Assembly in January 2017.

Click here for the Vermont-ABLE factsheet 

See the Vermont-ABLE press release here: VT-ABLE Savings Initiative

 

Agenda & Meeting Notes

Agenda         Meeting Notes

09/23/2016

09/23/2016

01/5/2016

01/05/2016

12/21/2015

12/21/2015

10/29/2015

10/29/2015

09/30/2015

9/30/2015

08/31/2015

08/31/2015

 

IRS Regulations

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.