HB 15-1359 Summary

• Creates the Achieving a Better Life Experience (ABLE) savings program in Colorado under Section 529A of the Internal Revenue Code, allowing individuals with disabilities to save money for qualified disability expenses without losing federal benefits.

• Establishes that the ABLE program will be administered by the higher education authority (collegeinvest) through financial institution managers, with accounts operating similarly to the existing college savings program.

• Permits the authority to invest ABLE account funds with other qualified accounts, contract with other states without ABLE programs to provide access, and contract with states that have ABLE programs to provide Colorado residents access to their programs.

• Restricts ABLE program participation to Colorado residents and residents of states contracting with Colorado, while the college savings program remains open to both residents and non-residents.

• Provides state income tax exemption for ABLE account distributions used for qualified disability expenses, and clarifies that program funds are exempt from creditors' claims except as provided under federal law.