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Treasurer urges Connecticut to update ABLE CT law to reflect federal changes, ease account fees
Summary
State Treasurer Eric Russell told the Human Services Committee the bill to amend Connecticut's ABLE CT statute would align state code with recent federal law, raise the age-of-diagnosis threshold and let the state treasurer cover small maintenance fees for low-balance accounts.
State Treasurer Eric Russell testified March 11 before the Human Services Committee in support of legislation to update Connecticut's ABLE CT program to match recent federal changes and to reduce barriers for account holders.
Russell said the bill would raise the age-of-diagnosis threshold for ABLE eligibility from 26 to 46, effective Jan. 1, 2026, and would permit automatic incorporation of future federal changes into Connecticut law. "This change is expected to significantly increase the pool of eligible beneficiaries," Russell said, noting national estimates of increased eligibility among veterans and others who develop disabilities later in life. He also said the treasurer's office would, within available appropriations, be permitted to cover small annual account maintenance fees — a change expected to cost under $50,000 per year but aimed at avoiding situations where fees consume small account balances.
The treasurer described ABLE CT as a federally qualified savings program that helps people with disabilities save for disability-related expenses without losing means-tested benefit eligibility such as Medicaid and Supplemental Security Income. Russell said the program is administered through the National ABLE Alliance, a multi-state purchasing coalition.
Committee members asked practical questions: how the by-reference update would work, and whether the change is simply to harmonize state law with federal rules already adopted. Russell answered that the federal expansion of the age threshold is already law and the bill will avoid repeated statutory fixes by allowing automatic alignment with federal standards.
The bill also proposes that ABLE CT account balances be disregarded for all means-tested state programs. Russell said the office expects the statutory change to remove confusion for beneficiaries and strengthen the program's impact.
Why it matters: Advocates told the committee that expanding eligibility and reducing account fees will make ABLE accounts more accessible and useful for people with disabilities, especially those who acquire disabling conditions later in life. The treasurer framed the bill as a modest state fix that prevents unnecessary administrative churn while broadening opportunity for retirement and supports for people with disabilities.
Treasurer Russell closed by offering to answer committee questions and thanking members for their support of ABLE CT enhancements.
