Nebraska Prepares to Open ABLE Accounts to Residents of Other States
A new federal law allows persons with disabilities to save for their futures through tax-advantaged savings accounts set up by states. These accounts -- called ABLE -- are much like 529 college savings plan.
On February 23, Nebraska Treasurer Don Stenburg announced plans to make his state’s plan available nationwide.
Nebraska is one of 34 states that have passed legislation to implement the December 2014 ABLE law. (See this February 2016 CSG Research Brief for more on ABLE accounts.) The federal law allows persons with disabilities to save for their futures through tax-advantaged savings accounts set up by states. These ABLE accounts are much like 529 college savings plan.
With a recent change in federal policy, persons are not required to use an account in their home state, but instead can shop around.
Nebraska’s Enable plan is expected to be one of the first plans on the market under the new federal law, according to the Lincoln Journal Star. The state has reason to be optimistic that the account will be successful. The state’s 529 college savings plan has 243,000 accounts, only 70,000 of which are held by Nebraskans.