MI HB4542

Establishes the Michigan Achieving a Better Life Experience (ABLE) program in the Department of Treasury, effective January 1, 2016, to allow individuals with disabilities to save money for qualified disability expenses through tax-advantaged savings accounts.

Authorizes the State Treasurer to contract with multiple program managers to offer various savings plans and investment strategies, with maximum account balances matching those allowed under the Michigan Education Savings Program.

Allows residents of Michigan and contracting states to open ABLE accounts with a designated beneficiary, with initial minimum deposits of $25 for cash contributions or $15 per pay period for payroll deduction plans.

Exempts ABLE savings account contributions, interest earned, and qualified withdrawals from state income taxation and protects account balances from creditor claims and asset-based eligibility determinations for state assistance programs.

Requires program managers to submit annual reports to the Treasurer and provide account statements to owners, with fees capped at 2.0% of average daily net assets, and establishes disclosure requirements regarding account terms, investment options, and tax consequences.