Creating the “South Carolina ABLE Savings Program” for Disabled Individuals
S.1050 establishes the SC Able Savings Program, which would allow disabled individuals and their families to set up tax-free savings accounts to cover disability-related expenses. The accounts would have no impact on eligibility for government assistance.
This is a program created by the Federal government in 2014. The program would be set up by the state Treasurer, who would either select the financial agency(s) to administer the savings accounts, or determine that savings deposits be sent directly the program trust fund, also created under this bill. Also, an expense fund is created for program administration expenses, to be funded by the financial agency(s) administering the accounts, federal or private grants, and general fund appropriations, if any.
While tax-free savings accounts are always a good idea, this program and bill begs the question of why government must administer the accounts to begin with. Doing so not only keeps government overly involved in individual finances, but will ensure additional cost to the taxpayers in program administration and the inevitable bloat and red tape that accompanies everything that government – state and federal – does.