Present law establishes the qualified achieving a better life experience (ABLE) program to assist eligible individuals in saving money to meet qualified disability expenses. Any earnings made in the ABLE account must only be expended for the student's education expenses. This bill removes such limitation on expenditures. ELIGIBLE INDIVIDUAL Present law requires the qualified ABLE program to allow one or more persons to make contributions for a taxable year into an account for the benefit of an eligible individual who is also the designated beneficiary during the taxable year. The designated beneficiary must be an eligible individual at the time the account is established, at the time of any contribution to the account, and at the time of a distribution from an account for qualified disability expenses. The program must limit one eligible individual or designated beneficiary to one account. Present law defines an "eligible individual" as an individual who is entitled to benefits based on blindness or disability under the federal Social Security Act, and such blindness or disability occurred before the individual turned 26, or a disability certification for the individual was filed with the federal department of the treasury. Such disability certification, signed by a physician, certifies and includes a copy of an individual's medically determinable physical or mental impairment that results in marked and severe functional limitations and that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than 12 months, or is blind and such blindness or disability occurred before the individual turned 26. The eligible individual is the account owner and the designated beneficiary on the account. This bill changes the definition of "eligible individual" to align with the definition as it is in the federal Internal Revenue Code (IRC), and all rules, regulations, notices, and interpretations released by the U.S. treasury. The IRC's present definition provides that an individual is an eligible individual for a taxable year if, during such taxable year, (i) the individual is entitled to benefits based on blindness or disability under the federal Social Security Act, and such blindness or disability occurred before the date on which the individual turned 26, or (ii) a disability certification with respect to such individual is filed with the federal secretary of the treasury for such taxable year. DISABILITY CERTIFICATION This bill changes the definition of "disability certification" to align with the definition as it is in the IRC, and all rules, regulations, notices, and interpretations released by the U.S. treasury. In the IRC, the definition for "disability certification" is, with respect to an individual, a certification to the satisfaction of the federal secretary of the treasury by the individual or the parent or guardian of the individual. The certification certifies that the individual has a medically determinable physical or mental impairment, which results in marked and severe functional limitations, and which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months, or is blind within the meaning of the federal Social Security Act, and such blindness or disability occurred before the date on which the individual turned 26. The certification includes a copy of the individual's diagnosis relating to the individual's relevant impairment or impairments and is signed by a physician meeting the criteria of the federal Social Security Act.

Statutes affected:
Introduced: 71-4-803, 71-4-806(d), 71-4-806