Human Resources Committee – Week 15, 2021


HF 835 – ABLE Trust Accounts

HF 835 makes the following improvements to the Iowa ABLE (Iowa Achieving a Better Live Experience) Savings Plan Trust Accounts:

  • Additional flexibility for those who have either a medical assistance special needs trust under 633C or a supplemental needs trust under 634A to transfer those funds to the Iowa ABLE Savings Plan Trust Account of the designated beneficiary.
  • Greater flexibility and reduced burden on eligible individuals by expanding the list of those eligible to enter into a participation agreement and provide signature authority under Iowa Code 12I. These changes are in accordance with the IRS final regulations for ABLE programs.
  • Even greater assurances to individuals and families with disabilities by prohibiting recovery of any account balance following the death of an individual who is a designated beneficiary of an ABLE savings account; the language would also allow flexibility for the designated beneficiary’s account to be transferred to an account for another eligible individual specified by the designated beneficiary or allow for the balance to be transferred to the estate of the designated beneficiary.

These changes will encourage more people to use pooled trusts without fear that their money will end up in state hands upon their passing, and thereby supporting the health, independence and quality of life of more individuals and families living with disabilities.
[4/21: 46-0 (Excused: Mathis, Nunn, Schultz, Whiting)]