House Bill 4542 Michigan Achieving a Better Life Experience (ABLE Act)Published November 5, 2015
Michigan residents who care for an individual with a disability will soon have access to special savings accounts to help them pay for certain expenses thanks to legislation signed this week by Lt. Gov. Brian Calley. "The ABLE Act provides Michiganders with disabilities more financial opportunities that will help them live more self-determined independent lives," Calley said. "Families will now have tax-exempt options to save more money to support their loved ones without worrying about losing access to other benefits."
House Bill 4542 creates the Michigan Achieving a Better Life Experience (ABLE Act) and authorizes ABLE savings accounts to be used for spending on education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management, legal fees and other expenses. HB 4543 creates an income tax deduction for ABLE Act accounts, with a deduction cap of $5,000 for a single return or $10,000 for a joint return. The bills are now Public Acts 160 and 161 of 2015, respectively.
HB 4544 excludes money in an ABLE Act account from being used in determining financial eligibility for assistance programs. It is now PA 162. Senate Bill 360 changes the maximum amount for Michigan Education Savings Program accounts to $500,000, from $235,000. The maximum amount allowed in ABLE accounts is tied to the maximum for MESP accounts. The bill is now PA 163.
Click here for more information