- Published: Thursday, April 23, 2015 06:00 PM
SPRINGFIELD- Families with disabled family members may soon have an important resource to provide a secure financial future for their loved ones.
State Senator Tom Cullerton (D-Villa Park) passed Senate Bill 1383, which creates a tax-exempt plan to assist individuals and families in saving money to cover the expenses for people with disabilities.
“We need to give family members the right tools to provide their loved ones with disabilities the means to live their lives with pride and respect,” said Cullerton.
SB1383 creates the Illinois Achieving a Better Life Expectancy Act (ABLE Act), which creates accounts similar to tax-advantaged college saving plans where income earned in the account is not taxable. This legislation comes after the federal government passed the Achieving a Better Life Experience Act of 2014 with bipartisan support.
Last week, Virginia was the first state to enact the program since the federal legislation was passed.
“This plan would lighten the load a bit and make it easier for families to save money as they continue to make important life decisions for their future,” said Cullerton.
Under this initiative, the Illinois Treasurer’s office would be responsible for creating ABLE accounts in accordance with federal rules and regulations. The accounts can be used to pay for qualifying expenses such as education, health, housing and transportation costs.
SB 1383 passed the Senate and moves to the House for consideration.