What's happening
This bill raises the maximum account balance for New York ABLE program accounts to match the federally authorized limit for college savings programs.
Why it matters
Increases savings potential for people with disabilities. By tying the ABLE account balance cap to the higher federal 529 college savings limit, individuals with disabilities (and their families) can save significantly more money for disability-related expenses without risking eligibility for means-tested benefits.
Aligns New York's ABLE program with federal standards. This change ensures the state program keeps pace with federal limits, simplifying rules for account holders who may also participate in other savings programs and reducing confusion about differing caps.
Expands long-term financial security and planning options. With a higher maximum, families can better plan for future needs such as housing, education, or healthcare expenses that may arise over a beneficiary’s lifetime.
May encourage broader participation and contributions. The higher cap could make the ABLE program more attractive to families and donors, possibly increasing participation rates and overall contributions to support people with disabilities.
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Who cares
New York ABLE beneficiaries
The bill would replace the $100,000 ceiling on their aggregate account balance with the federally authorized contribution level for New York’s college choice tuition savings program.
Families and others contributing to ABLE accounts
The bill would allow more room for contributions if the comptroller raises the maximum account balance under the new ceiling.
State Comptroller’s office
The office would retain responsibility for setting the maximum balance and preventing excess contributions, subject to the revised ceiling and applicable law.
Headline styles
Raise ABLE Account Limits
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
No co-sponsors yet.
History
- Substituted by A7473
- Ordered to third reading cal.1206
- Committee discharged and committed to rules
- Referred to mental health and developmental disabilities
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Raise ABLE Account Limits
Signed by Governor · Sponsor Aileen Gunther
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6238
2019-2020 Regular Sessions
IN SENATE
May 28, 2019
Introduced by Sen. CARLUCCI -- (at request of the State Comptroller) -read twice and ordered printed, and when printed to be committed to the Committee on Mental Health and Developmental Disabilities
AN ACT to amend the mental hygiene law, in relation to increasing the maximum account balance for the New York ABLE program
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 12 of section 84.09 of the mental hygiene law, as added by chapter 576 of the laws of 2015, is amended to read as follows:
12. The comptroller shall promulgate rules or regulations to prevent contributions on behalf of a designated beneficiary in excess of an amount that would cause the aggregate account balance for all accounts for a designated beneficiary to exceed a maximum account balance, as established from time to time by the comptroller. Such maximum amount shall reflect reasonable expenditures and shall be determined in accordance with any applicable state or federal law, rule, or regulation. Such maximum amount shall not exceed [one hundred thousand dollars] the federally authorized level of contribution established for the New York college choice tuition savings program pursuant to subdivision ten of section six hundred ninety-five-e of the education law unless otherwise permitted by law.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09005-02-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the mental hygiene law, in relation to increasing the maximum account balance for the New York ABLE program
Purpose
The purpose of this legislation is to increase the maximum account balance for the New York Achieving A Better Life Experience (NY ABLE) Program to match the federally authorized level.
Summary of provisions
Section 1 of this proposal amends section 84.09 of the mental hygiene law.
Section 2 of this proposal provides for an immediate effective date.
Justification
The federal ABLE Act (Internal Revenue Code § 529A) authorizes a state to set its maximum account balance in an amount not to exceed the maxi- mum account balance set for its 529 College Savings Program which is currently set at $520,000. In most states, the ABLE maximum account balance is similar or equal to that of the federally authorized maximum set for that state's 529 College Savings Program.
In 2015, when the New York Achieving A Better Life Experience Program (NY ABLE or Program) was originally enacted, the maximum account balance was set at one hundred thousand dollars ($100,000), and contributions to the Program were eligible for a New York State tax deduction. However, the NY ABLE Act was signed contingent on the enactment of a chapter amendment eliminating this state tax benefit, and, in 2016, the New York State tax deduction was eliminated without a corresponding amendment to increase the Program's maximum account balance. Consequently, New York's current maximum account balance is the second lowest of any ABLE program in the country, even though the administration of NY ABLE does not result in a direct loss of tax revenue to the State.
The maximum ABLE account balances of neighboring states which track the 529 maximum in each are as follows: Massachusetts: $400,000; New Jersey: $305,000; and Pennsylvania: $511,758. New York's ABLE Program has a $100,000 maximum, far below New York's current 529 College Savings Program maximum of $520,000.
As a result of legislative changes in the federal Tax Cuts and Jobs Act, beginning in 2018, the current maximum annual contribution amount increased to over twenty-seven thousand dollars ($27,000) per year for ABLE program participants who are employed. Since 2019 marks the third calendar year in which NY ABLE has been available to participants, the maximum account balance of $100,000 may be reached within the next two years.
Increasing the allowable maximum account balance in the NY ABLE Program to an amount equal to the federally authorized level for the 529 College Savings Program would align NY ABLE with several other states' ABLE programs and enable participants to maximize the benefits offered by the Program.
Prior legislative history
New bill.
Fiscal implications for state
This change would be revenue-neutral to the State of New York, since contributions to the NY ABLE Program are not tax deductible.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.