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2015 SESSION

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HB 2306 ABLE savings trust accounts; established, administered by the Virginia College Savings Plan.

Introduced by: Eileen Filler-Corn | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Achieving a Better Life Experience (ABLE) savings trust accounts established; administered by the Virginia College Savings Plan. Establishes ABLE savings trust accounts to be administered by the Virginia College Savings Plan to facilitate the saving of private funds for paying the qualified disability expenses of certain disabled individuals. Under the federal Achieving a Better Life Experience Act of 2014, Congress authorized states to establish ABLE savings trust accounts to assist individuals and families in saving and paying for the education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, and other expenses of individuals who were disabled or blind prior to the age of 26. Earnings on contributions to ABLE savings trust accounts are exempt from federal income tax.

Because Virginia conforms to the federal income tax laws, earnings on contributions to ABLE savings trust accounts will also be excluded from Virginia taxable income. This bill is identical to SB 1404.

SUMMARY AS PASSED HOUSE:

Achieving a Better Life Experience (ABLE) savings trust accounts established; administered by the Virginia College Savings Plan. Establishes ABLE savings trust accounts to be administered by the Virginia College Savings Plan to facilitate the saving of private funds for paying the qualified disability expenses of certain disabled individuals. Under the federal Achieving a Better Life Experience Act of 2014, Congress authorized states to establish ABLE savings trust accounts to assist individuals and families in saving and paying for the education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, and other expenses of individuals who were disabled or blind prior to the age of 26. The Virginia College Savings Plan will be the designated state agency administering ABLE savings trust accounts. Earnings on contributions to ABLE savings trust accounts are exempt from federal income tax.

The bill provides that to the extent excluded from federal adjusted gross income, there shall be added to the Virginia taxable income of an individual any income attributable to an ABLE account as defined under § 529A of the Internal Revenue Code. This has the effect of allowing individuals to take advantage of the exclusion from tax at the federal level for income on ABLE accounts, but requires individuals to add such income to their taxable income that is subject to Virginia individual income tax.

The bill also requires the chief executive officer of the Virginia College Savings Plan to submit a written report by December 1, 2016, to the General Assembly identifying and explaining the agency's workload standards and methodologies used to determine staffing levels.

SUMMARY AS INTRODUCED:

Achieving a Better Life Experience (ABLE) savings trust accounts established; administered by the Virginia College Savings Plan. Establishes ABLE savings trust accounts to be administered by the Virginia College Savings Plan to facilitate the saving of private funds for paying the qualified disability expenses of certain disabled individuals. Under the federal Achieving a Better Life Experience Act of 2014, Congress authorized states to establish ABLE savings trust accounts to assist individuals and families in saving and paying for the education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, and other expenses of individuals who were disabled or blind prior to the age of 26. The Virginia College Savings Plan will be the designated state agency administering ABLE savings trust accounts. Earnings on contributions to ABLE savings trust accounts are exempt from federal income tax.

Under the bill, earnings on ABLE savings trust accounts will be excluded from Virginia taxable income. In addition, the bill provides that beginning with taxable year 2016 contributors to ABLE savings trust accounts will be allowed an individual income tax deduction up to $4,000 in contributions per year per account. Persons age 70 or over will not be subject to the $4,000 per account maximum annual deduction.