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Committee approves technical revisions for ABLE accounts to address beneficiary funds at death
Summary
The committee passed HB1076 to clarify disposition of ABLE account balances on a beneficiary’s death and to limit state recovery under certain federal rules; the treasurer's office reported the ABLE program had 44 accounts and roughly $70,000 in assets shortly after launch.
House Bill 1076, carried in the Senate by Senator Malek, clarifies what happens to remaining assets in Achieving a Better Life Experience (ABLE) accounts when the designated beneficiary dies and provides that an agency of the state shall not seek federal‑required reimbursement of Medicaid expenditures from those accounts under specified circumstances.
Grant Wallace, chief deputy treasurer for Treasurer Milligan, told the committee the ABLE program launched in October and that, as of December, the state had 44 accounts open with roughly $70,000 in assets under management and an average account size of about $1,400. He said 27 accounts were established for the Division of Children and Family Services with a higher average tied to agency use.
Committee members asked about tax treatment; Wallace said interest earned in ABLE accounts is currently not taxed at the federal or state level, and that there is no state tax deduction comparable to 529 college savings accounts. After brief discussion the committee moved, seconded and passed HB1076 by voice vote. The chair then adjourned the committee.
