The federal government, and some state governments, make available several vehicles by which people can save and invest in tax-advantaged ways. For example, 529 plans allow families to save and invest for college expenses. Some states provide that contributions to 529 plans are tax deductible up to certain amounts. All 529 plans currently provide that the money grows tax-free and may be withdrawn tax-free. And there are many tax-advantaged vehicles for saving for retirement?401(k)s, IRAs, and SEPs, to name some.

    However, neither the federal government nor any of the states provide tax-advantaged ways to save and invest to benefit disabled children and adults who aren't capable of supporting themselves through work.

 

 

    UDES wants federal legislation that would establish tax-advantaged savings and investment vehicles to benefit children and adults with disabilities. Right now, severely disabled adults who can't work are often entirely dependent on government benefits such as SSI (Supplemental Security Income). Tax-advantaged savings and investments are a critical way to promote the ability of families and people with disabilities to supplement often inadequate government benefits.

 

 

    UDES is preparing a white paper on this issue which will compare and contrast the array of tax-advantaged savings and investment vehicles available to those who work (and others) with the limited and non-tax-advantaged vehicles available to benefit people with disabilities who are unable to support themselves through work.

 

 

    Legislation to enact federally tax-advantaged savings and investments to benefit people with disabilities would have to be passed by the Congress and signed by the president.

 

 

    Right now, UDES is working to identify and contact potential partners on this issue.