Economic Justice

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ABLE Friends,
We are excited to announce the launch of our 2018 #ABLEtoSave campaign!
August 2018 is #ABLEtoSave month, a nationwide awareness campaign led by the ABLE National Resource Center (ANRC) to provide information about ABLE accounts. During each of the four weeks in August, ANRC will provide resources, including:

• Informational videos
• Webinars on ABLE-related topics
• Personal testimonies from ABLE account owners
• The unveiling of ANRC's new and improved website
• And much more!

• Week 1 (August 6 - 12): Basic Overview of ABLE 
• Week 2 (August 13 - 19): Eligibility
• Week 3 (August 20 - 26): Qualified Disability Expenses
• Week 4 (August 27 - 31): Enrollment and Beyond

The primary goals of #ABLEtoSave are to increase awareness about ABLE accounts and the amount of ABLE accounts opened across the country. 

Learn more about #ABLEtoSave.

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Here we go,,,,

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In 2017, 18.7 percent of people age 16 and older with a disability were employed. That compares with 65.7 percent of people without a disability. More workers with a disability worked in education and health services (21.6 percent) than in any other industry. Education and health services employed 33.8 percent of women with a disability, compared with 11.5 percent of men with a disability.

Retail trade employed 12.7 percent of workers with a disability, compared with 10.8 percent of workers with no disability. Agriculture and related industries employed 3.1 percent of workers with a disability, which was twice the percentage of workers with no disability.

Employed people with a disability were nearly equally likely to work in manufacturing (10.2 percent) and in leisure and hospitality (9.0 percent) as people without a disability (10.0 percent and 9.3 percent, respectively).

These data are from the Current Population Survey. See "Persons with a Disability: Labor Force Characteristics — 2017" for more information. For more statistics on people with a disability, see Demographics: Disability.

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Without a big change, advocates are warning that a recently-established vehicle to help people with disabilities save money without risking their government benefits could be unsustainable.

ABLE programs across the country desperately need an infusion of more account holders, according to a letter sent to congressional leadership this month from over 150 disability advocacy groups.

Established under a 2014 federal law, ABLE accounts allow people with disabilities to save up to $100,000 without risking eligibility for Social Security and other government benefits. Medicaid can be retained no matter how much money is in the accounts.

To date, 37 states offer ABLE programs, though many are open to those with disabilities nationwide.

Under the law, however, ABLE accounts are only available to people with disabilities that onset prior to age 26. Now, advocates are calling on Congress to pass a proposal known as the ABLE Age Adjustment Act that would increase the cutoff age to 46, dramatically expanding the number of potential account holders.

“Simply put, without increasing the ABLE eligibility criteria for age of disability onset from prior to age 26 to prior to age 46 in order to significantly expand the pool of individuals who can open ABLE accounts, the entire ABLE program nationwide is in jeopardy,” the letter states.

The advocates cite alarming numbers from the National Association of State Treasurers. The group, which represents state ABLE administrators and program managers, estimates that 390,000 accounts are needed by June 2021 in order for ABLE programs to reach “bare bones sustainability.”

At the end of 2017, there were only 17,000 accounts open across the country. Given the rate of adoption so far, the analysis from the state treasurers’ group suggests it is “unlikely” that the number of accounts will grow rapidly enough between now and 2021 to reach the goal.

“There is a cost associated with maintaining these accounts and with economies of scale, costs go down,” said Michael Frerichs who serves as Illinois State Treasurer and co-chair of the National Association of State Treasurers’ ABLE committee. “Eventually we hope they are self-sustaining.”

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As The New York Times reports, the number of applicants for Social Security Disability Insurance (SSDI) has fallen even faster since 2015 than the Social Security Administration (SSA) expected. In fact, disability applications and benefit awards have fallen for nearly a decade, even if some government officials haven’t acknowledged it. But the shift is significant, and it’s good news for SSDI’s finances.

SSDI applications and awards have fallen by over 25 percent since 2010 (see chart), while the number of beneficiaries has dropped by over 600,000 over the past four years. And Social Security’s trustees project that the share of Americans receiving SSDI will remain flat over the next 20 years.

SSA’s actuaries and other experts predicted this downward trend. Though the number of beneficiaries grew for most of SSDI’s history, that mostly reflected demographic factors: the population increased; baby boomers aged into late middle age, when the odds of becoming disabled rise sharply; and more women joined the workforce, paid into Social Security, and earned coverage. Meanwhile, the rise in Social Security’s retirement age to 66 means that workers who become disabled remain in SSDI longer before switching into retirement benefits. Then the Great Recession and slow recovery caused a surge in SSDI applications (though most applicants are denied benefits), while the program received less tax income than previously projected.

The receipt of SSDI benefits as well as program costs have since fallen as demographic and economic pressures eased. As more boomers reach retirement, the number of workers receiving SSDI declined. Men and women now qualify for benefits in nearly equal numbers. Likewise, SSDI applications fell significantly as the economy recovered.

In the last few years, SSDI applications and awards have fallen even faster than predicted. Social Security’s actuaries note that the drop in the number of beneficiaries has been steeper than in past economic recoveries, and they’re trying to understand why. One factor is SSA budget cuts, which forced field office closures that led to “large and persistent reductions” in the number of disability beneficiaries. The cuts also contributed to a record-breaking backlog in disability appeals, which may deter applicants. Another factor is falling allowance rates for disability appeals. The trustees have been rightly cautious in interpreting short-term trends, and they assume that the declines will taper off in the next several years.

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People with disabilities can now put more money into their tax-favored Achieving a Better Life Experience (ABLE) accounts and may, for the first time, qualify for the Saver’s Credit for low- and moderate-income workers, according to the Internal Revenue Service.

The Tax Cuts and Jobs Act, the tax reform legislation enacted in December, made major changes to the tax law for 2018 and future years, including increasing the standard deduction, removing personal exemptions, increasing the Child Tax Credit, limiting or discontinuing certain deductions and changing tax rates and brackets.

The new law also enables eligible individuals with disabilities to put more money into their ABLE accounts, qualify for the Saver's Credit in many cases and roll money from their 529 plans -- also known as qualified tuition programs -- into their ABLE accounts.

States can offer specially designed ABLE accounts to people who become disabled before age 26. Recognizing the special financial burdens faced by families raising children with disabilities, ABLE accounts are designed to enable people with disabilities and their families to save for and pay for disability-related expenses. Though contributions are not deductible, distributions, including earnings, are tax-free to the designated beneficiary if used to pay qualified disability expenses. These expenses can include housing, education, transportation, health, prevention and wellness, employment training and support, assistive technology and personal support services and other disability-related expenses.

Normally, contributions totaling up to the annual gift tax exclusion amount, currently $15,000, may be made to an ABLE account each year for an eligible person with a disability, known as a designated beneficiary. But, starting in 2018, if the beneficiary works, the beneficiary can also contribute part or all of what they make to their ABLE account.

This additional contribution is limited to the poverty line amount for a one-person household. For 2018, this amount is $12,140 in the continental U.S., $13,960 in Hawaii and $15,180 in Alaska. However, the designated beneficiary is not eligible to make this additional contribution if their employer contributes to a workplace retirement plan on their behalf.

In addition, starting in 2018, ABLE account beneficiaries can qualify for the Saver’s Credit based on contributions they make to their ABLE accounts. Up to $2,000 of these contributions qualify for this special credit designed to help low- and moderate-income workers. Claimed on Form 8880, Credit for Qualified Retirement Savings Contributions, this credit can reduce the amount of tax a person owes or increase their refund. Like other IRS tax forms, Form 8880 will be revised later this year to reflect changes made by the new law.

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Event Information: Advantages of ABLE for Those Not Receiving Public Benefits

Registration is required to join this event. If you have not registered, please do so now. English : New York Time

Event status: Not started (Register) Date and time: Thursday, June 28, 2018 2:00 pm  Eastern Daylight Time (New York, GMT-04:00)  Change time zone   Thursday, June 28, 2018 1:00 pm  Central Daylight Time (Chicago, GMT-05:00)   Thursday, June 28, 2018 12:00 pm Mountain Daylight Time (Denver, GMT-06:00)   Thursday, June 28, 2018 11:00 am Pacific Daylight Time (San Francisco, GMT-07:00) Duration: 1 hour 30 minutes Description: Many people mistakenly believe that ABLE accounts only provide a benefit to those individuals with disabilities that are enrolled in programs that have asset tests or resource limits, such as Supplemental Security Income (SSI) and/or Medicaid. This is simply not true. While ABLE accounts do help eligible individuals with disabilities save for their futures without jeopardizing their public benefits, it is not required that you be receiving public benefits in order to be an ABLE account owner. Additionally, there are significant financial advantages of being an ABLE account owner, that can often outweigh other types of long-term savings tools, regardless of whether or not you are on public benefits. The purpose of this webinar is to focus on the advantages of being an ABLE account owner for individuals with disabilities who are not receiving public benefits. The webinar will take place Thursday, June 28th from 2:00-3:30pm Eastern and include insight from experts in the disability sphere, the financial planning industry, state ABLE programs, and self-advocates. Topics will include: - Eligibility Requirements for People w/ Disabilities Not Receiving SSI or SSDI - Understanding ABLE-Related Tax Benefits (including tax free growth and state income tax deductions) - Medicaid Payback Provision (DOES NOT APPLY TO THOSE NOT ON MEDICAID) - Profiles and Scenarios  - ABLE Account Testimonial

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WID E3 offers specific economic empowerment strategies, subject matter expertise, and technical assistance to improve the financial outcomes for people with disabilities. According to behavioral finance research, knowledge of basic financial information has the power to significantly reduce wealth inequality in the United States, particularly in traditionally underserved communities.

WID E3 has developed and curated a comprehensive group of resources to better meet the specific needs of the disability community. From budgeting, dealing with credit card debt, and taking advantage of refinancing opportunities to optimizing Social Security benefits, avoiding predatory lenders and financial scams, and planning for retirement, WID E3 has the resources to help change people’s lives.

WID is privileged to have assisted the Consumer Financial Protection Bureau (CFPB) in developing their “Focus on People with Disabilities, Your Money, Your Goals” Empowerment Toolkit. WID is also honored to be working with the Federal Deposit Insurance Corporation (FDIC) to ensure their “Money Smart” curriculum is inclusive of and relevant to people with disabilities.

EQUITY

EQUITY: Asset Building Strategies for People with Disabilities, A Guide to Financial Empowerment covers all topics that are important to people with disabilities in their quest for improved finances and asset building. WID offers financial education trainings and technical assistance for families, individuals and professionals based on WIOA requirements and EQUITY: Asset-Building Strategies for People with Disabilities. Click on the chapters below to begin exploring EQUITY.

Foreword & Preface
Chapter 1: Benefits
Chapter 2: Budgeting
Chapter 3: Paying Down Debt
Chapter 4: Credit
Chapter 5: Identity Theft
Chapter 6: Home Ownership
Chapter 7: Self-Employment
Chapter 8: Retirement

Or enjoy the entirety of EQUITY: Asset Building Strategies for People with Disabilities (PDF).

ABLE 101

WID also offers information and training to aid in understanding ABLE (“Achieving a Better Life Experience”) accounts. ABLE accounts are groundbreaking resources for certain people with disabilities to save money and invest for their future. These specialized savings accounts do not count as “assets” that the government uses to determine whether somebody is eligible for Supplemental Security Income (SSI), Medicaid, or other federal benefits. This means that account holders can save money and still receive vital benefits to protect their health and well-being.

ABLE Part 1: Intro to ABLE Accounts (PDF)
ABLE Part 2: Eligibility (PDF)
ABLE Part 3: Savings and Benefits (PDF)
ABLE Part 4: Choosing a Program (PDF)

ABLE Part 5: Myths and Opportunities (PDF)

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Registration is required to join this event. If you have not registered, please do so now.

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In their ground-breaking work, Financial Literacy and Economic Outcomes: Evidence and Policy Implications, Mitchell and Lusardi suggest that nearly one-third of wealth inequality can be explained by the financial-knowledge gap. According to the authors, this gap could increase as consumers confront ever-more sophisticated financial products and services.

Given that around 56.7 million people — 19 percent of the population – have a disability, according to the 2010 census; nearly 16 million Americans with a disability age 25 or older have at least some college education; and over two million have annual incomes over $50,000 (more here), providing financial education and access to people with disabilities is vital to facilitating a healthier, more inclusive economy.

People with disabilities have faced economic exclusion throughout history, largely owing to discriminatory attitudes and policies. And 28 years after the passage of the Americans with Disabilities Act, individuals with disabilities continue to battle against rampant societal and institutionalized bias.

Frequently stereotyped as unproductive and/or costly to accommodate, individuals with disabilities have suffered higher rates of unemployment along with lower levels of income and savings.

A 2015 survey from the Financial Industry Regulatory Authority’s Investor Education Foundation shows that people with disabilities reported lower scores on a financial literacy test than their non-disabled counterparts (44% vs. 53% average) and had lower self-perceived levels of financial knowledge (70% vs. 81%). People with disabilities are also more than twice as likely to find it “very difficult” to cover expenses and bills (23% vs. 9%), and twice as likely to be unbanked (12% vs. 6%), according to leading research.

Exacerbating the equity gap, many government disability benefit programs cap savings at $2,000, a clear disincentive for individuals with disabilities to become financially self-sufficient.