Voya Financial, Inc. (NYSE: VOYA), announced today that it supports — and encourages Congress to pass — the federal ABLE Employment Flexibility Act (H.R. 4672) to further enable financial wellbeing for workers with disabilities.
The bill would make ABLE accounts more accessible to employees with disabilities and remove a barrier to competitive, integrative employment. As it is currently written, the proposed legislation would assign similar treatment to contributions that employers make to ABLE accounts (529A accounts) as is assigned to employer contributions to retirement plans. In addition, it would provide more options for employees with disabilities to save for their futures without jeopardizing their eligibility for crucial government benefits.
Today, employer contributions to ABLE accounts are not counted as a tax deduction for the business, but employer contributions made to tax-qualified retirement plans are tax-deductible. This proposed legislation seeks to change that, adding incentives for employers to contribute to ABLE accounts for eligible employees.
Additionally, many people with disabilities depend on means-tested government benefit programs to sustain their independence. These programs — such as Medicaid, Supplemental Security Income (SSI), Federally Assisted Housing and the Supplemental Nutrition Assistance Program (SNAP) — determine eligibility by asset levels. Employee contributions to retirement plans that, in turn, are matched by employers can be considered accumulating assets for the individuals with disabilities, affecting their eligibility for these means-tested benefits. Contributions by both the employer and the employee to ABLE accounts would be excluded from asset tests, preserving eligibility for government benefits while enabling savings.
“This would be another positive step toward financial security and compensation equity for people with disabilities,” said Jessica Tuman, head of the Voya Cares Center of Excellence. “They would be able to contribute to the employer match, just as their colleagues would, while remaining within the asset limit of the means-tested government programs that they depend on for their independence.”
The Voya Cares® program is an extension of Voya’s vision and mission to help all Americans achieve the quality of life that they seek to and through retirement. The program is committed to making a positive difference in the lives of people with disabilities and special needs from birth through aging, by providing advocacy, resources and solutions.
“For employers, in addition to ‘doing the right thing,’ the proposed legislation would create additional flexibility to offer responsive employee benefit programs to help recruit, hire, train and retain people with disabilities, a largely untapped pool of talent,” said Tuman.
The ABLE Employment Flexibility Act bill, introduced into Congress on July 22, 2021, expands the 2014 Achieving a Better Life Experience (ABLE) Act that allows qualified beneficiaries with disabilities to save up to $15,000 a year in a 529A savings account for the purpose of supporting and maintaining their health, independence and quality of life, and those funds are excluded from the asset limitations of federal benefit programs. In 2017, the ABLE Act was further amended by the ABLE to Work Act that allows employed ABLE account owners who do not opt in to their retirement plans to save an additional $12,760* above the $15,000 limit.
*Federal poverty line for a one-person household in 2021 is $12,760.
About Voya Financial®
Voya Financial, Inc. (NYSE: VOYA), provides health, wealth and investment solutions that enable its approximately 14.8 million individual, workplace and institutional clients to achieve their financial wellness goals with confidence. With a vision to be America’s Retirement Company®, Voya’s products, solutions and digital capabilities help create a better financial future for all. Voya is a Fortune 500 company that had $7.6 billion in revenue in 2020 and $721 billion in total assets under management and administration as of June 30, 2021. Certified as a “Great Place to Work” by the Great Place to Work® Institute, Voya is equally committed to conducting business in a way that is socially, environmentally, economically and ethically responsible. Voya has earned recognition as one of the World’s Most Ethical Companies® by the Ethisphere Institute; as the No. 1-ranked financial services firm among Barron’s 100 Most Sustainable Companies for three consecutive years; as a member of the Bloomberg Gender Equality Index; and as a “Best Place to Work for Disability Inclusion” on the Disability Equality Index. For more information, visit voya.com. Follow Voya Financial on Facebook, LinkedIn and Twitter @Voya.
About Voya Cares®
An extension of Voya's vision and mission to help all Americans have the quality of life they seek in retirement, the Voya Cares program is committed to being a leader in making a positive difference in the lives of individuals with special needs and disabilities — as well as their families, caregivers and other providers — by offering a depth of resources focused on education, planning and solutions. Go to voyacares.com to learn more.
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Contacts
Media:
Kathryn Emery
Voya Financial
Office: (860) 580-2981
kathryn.emery@voya.com
