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Rules for Disabled Savings Boost Due This Fall, Administration Says

May 22, 2019, 3:29 PM

Treasury officials have given themselves until November to iron out regulations allowing for increased contributions to tax-advantaged savings accounts for disabled individuals.

The proposed rule relates to modifications made to Achieving a Better Life Experience (ABLE) accounts by President Donald Trump’s signature 2017 tax bill.

The accounts, which provide for tax-free distributions to cover qualified disability expenses such as housing, education and health care, were created by Congress in 2014.

Contributors currently can direct up to $15,000 per year to an ABLE account on behalf of a disabled person younger than 26. Trump’s changes include allowing disabled individuals who work ...