Achieving a Better Life Experience Act of 2013

“(f) ABLE Accounts

“(1) General rules—For purposes of any other provision of law with respect to a qualified ABLE program and an ABLE account, except as otherwise provided in this subsection—

“(A) a qualified ABLE program and an ABLE account shall be treated in the same manner as a qualified tuition program and an account described in subsection (b)(1)(A)(ii), respectively, are treated,

“(B) qualified disability expenses with respect to a program or account described in subparagraph (A) shall be treated in the same manner as qualified higher education expenses are treated, and

“(C) maximum contributions shall be no higher than the limit established by the State for their regular 529 account.

“(2) Qualified ABLE program—For purposes of this subsection, the term qualified ABLE program means a program established and maintained by a State or agency or instrumentality thereof—

“(A) under which a person may make contributions to an ABLE account which is established for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account,

“(B) which meets the requirements of the preceding subsections of this section (as modified by this subsection), determined by substituting—

“(i) “qualified ABLE program” for “qualified tuition program”, and

“(ii) “ABLE account” for “account”, and

“(C) which meets the other requirements of this subsection.

“(3) Qualified disability expenses—For purposes of this subsection—

“(A) In general—The term qualified disability expenses means any expenses which are made for the benefit of an individual with a disability who is a designated beneficiary.

“(B) Expenses included—The following expenses shall be qualified disability expenses if such expenses are made for the benefit of an individual with a disability who is a designated beneficiary and are related to such disability:

“(i) Education—Expenses for education, including tuition for preschool thru post-secondary education, which shall include higher education expenses (as defined by subsection (e)(3)) and expenses for books, supplies, and educational materials related to preschool and secondary education, tutors, and special education services.

“(ii) Housing—Expenses for a primary residence, including rent, purchase of a primary residence or an interest in a primary residence, mortgage payments, real property taxes, and utility charges.

“(iii) Transportation—Expenses for transportation, including the use of mass transit, the purchase or modification of vehicles, and moving expenses.

“(iv) Employment support—Expenses related to obtaining and maintaining employment, including job-related training, assistive technology, and personal assistance supports.

“(v) Health, prevention, and wellness—Expenses for health and wellness, including premiums for health insurance, mental health, medical, vision, and dental expenses, habilitation and rehabilitation services, durable medical equipment, therapy, respite care, long-term services and supports, nutritional management, communication services and devices, adaptive equipment, assistive technology, and personal assistance.

“(vi) Miscellaneous expenses—Financial management and administrative services; legal fees; expenses for oversight; monitoring; home improvements, and modifications, maintenance and repairs, at primary residence; or funeral and burial expenses.

“(vii) Assistive technology and personal support services—Expenses for assistive technology and personal support with respect to any item described in clauses (i) through (vi).

“(viii) Other approved expenses—Any other expenses which are approved by the Secretary under regulations and consistent with the purposes of this section.

“(C) Individual with a disability

“(i) In general—Except as provided in clause (ii), an individual is an individual with a disability for a year if the individual (regardless of age)—

“(I) 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 month, or

“(II) is blind.

“(ii) Disability certification required—An individual shall not be treated as an individual with a disability for a year unless the individual—

“(I) is receiving (or, for purposes of title XIX of the Social Security Act, is deemed to be, or treated as, receiving by the State Medicaid Agency) benefits under the supplemental security income program under title XVI of such Act, or whose benefits under such program are suspended other than by reason of misconduct,

“(II) is receiving disability benefits under title II of such Act, or

“(III) files a disability certification with the Secretary for such year.

“(iii) Disability certification defined—The term disability certification means, with respect to an individual, a certification to the satisfaction of the Secretary by the designated beneficiary or the parent or guardian of the designated beneficiary that—

“(I) the individual meets the criteria described in clause (i), and

“(II) includes a copy of the designated beneficiary’s diagnosis, signed by a physician meeting the criteria of section 1861(r)(1) of the Social Security Act.

“(iv) Restriction on use of certification—No inference may be drawn from a disability certification for purposes of establishing eligibility for benefits under title II, XVI, or XIX of the Social Security Act.

“(4) Rollovers from ABLE accounts—Subsection (c)(3)(A) shall not apply to any amount paid or distributed from an ABLE account to the extent that the amount received is paid, not later than the 60th day after the date of such payment or distribution, into—

“(A) another ABLE account for the benefit of—

“(i) the same beneficiary, or

“(ii) an individual with a disability who is a family member of the beneficiary,

“(B) any trust which is described in subparagraph (A) or (C) of section 1917(d)(4) of the Social Security Act and which is for the benefit of an individual described in clause (i) or (ii) of subparagraph (A), or

“(C) a qualified tuition program—

“(i) for the benefit of the designated beneficiary, or

“(ii) to the credit of another designated beneficiary under a qualified tuition program who is a member of the family of the designated beneficiary with respect to which the distribution was made.

“(5) Transfer to State—Subject to any outstanding payments due for qualified disability expenses, in the case that the designated beneficiary dies or ceases to be an individual with a disability, all amounts remaining in the qualified ABLE account not in excess of the amount equal to the total medical assistance paid for the designated beneficiary after the establishment of the account, net of any premiums paid from the account or paid by or on behalf of the beneficiary to a Medicaid Buy-In program, under any State Medicaid plan established under title XIX of the Social Security Act shall be distributed to such State upon filing of a claim for payment by such State. For purposes of this paragraph, the State shall be a creditor of an ABLE account and not a beneficiary. Subsection (c)(3) shall not apply to a distribution under the preceding sentence.

“(6) Regulations—Not later than 6 months after the date of the enactment of this section, the Secretary may prescribe such regulations or other guidance as the Secretary determines necessary or appropriate to carry out the purposes of this section, including regulations to prevent fraud and abuse with respect to amounts claimed as qualified disability expenses.”

“(F) section 529(d) by reason of 529(f) (relating to ABLE accounts).”