First the good news…

The recently enacted Consolidated Appropriations Act of 2016 includes a subsection that eliminates the state residency requirement for Achieving a Better Life Experience (“ABLE”) accounts. ABLEs are tax-free accounts (similar to §529 qualified tuition plans) that allow individuals who become disabled before reaching the age of 26 to pay for certain qualified expenses incurred for education, employment, community, improved independence and health and wellness purposes.

The new legislation removes the state residency requirement allowing individuals (like those using §529 qualified tuition plans) to establish an ABLE in any state.

…and now the bad news

At the current time even though it’s been over a year since the creation of ABLEs not one state (or commonwealth – thank you Kentucky, Massachusetts, Pennsylvania and Virginia!) offers this type of account.