HB 2838 Summary

• Creates the Achieving a Better Life Experience (ABLE) Program in Oklahoma to allow individuals with disabilities to establish tax-advantaged savings accounts for qualified disability expenses

• Establishes a three-member Program Committee composed of the Directors of Department of Human Services and Oklahoma Department of Rehabilitation Services plus the State Treasurer to administer the program

• Allows eligible individuals with disabilities (determined before age 26) to open ABLE accounts with cash contributions capped at amounts reasonably necessary for qualified disability expenses, with one account per beneficiary

• Exempts interest, dividends, capital gains, and qualified distributions from Oklahoma income tax; nonqualified distributions are taxable to the person making the withdrawal

• Provides account protections including restrictions on creditor attachment, prohibition on using accounts as loan collateral, and limits account owners to two investment direction changes per year; becomes effective November 1, 2016