Lawmakers used a last-minute House Rules Committee resolution to put Medicare program changes and professional employer organization (PEO) payroll tax responsibility provision in a popular special needs account bill.
Members of the House voted 404-17 Wednesday to pass H.R. 647, the Achieving a Better Life Experience (ABLE) Act.
The first section of H.R. 647 — the section available to people who clicked on the link to the information about the bill available on the Library of Congress system — would let states give families the ability to put after-tax income in accounts for severely disabled children. Children who used ABLE account money to pay for qualified expenses, such as housing and transportation, would pay no income taxes on the distributions.
Federal programs would not count ABLE account assets used for purposes other than paying for housing in program eligibility calculations.
The special needs account section of the ABLE Act grew out of the work of the federal Commission on Long-Term Care. Commission members decided to support efforts to create the equivalent of a 529 college savings plan program for the families of severely disabled children.
In House Resolution 766, lawmakers added a provision that would let parents and grandparents who contribute to an ABLE account at least one year before going bankrupt keep the ABLE account contributions out of the bankruptcy estate.