text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Achieving a Better Life Experience 
  Act of 2011'' or the ``ABLE Act of 2011''.
  
  SEC. 2. PURPOSES.
  
      The purposes of this Act are as follows:
              (1) To encourage and assist individuals and families in 
          saving private funds for the purpose of supporting individuals 
          with disabilities to maintain health, independence, and quality 
          of life.
              (2) To provide secure funding for disability-related 
          expenses on behalf of designated beneficiaries with 
          disabilities that will supplement, but not supplant, benefits 
          provided through private insurance, the Medicaid program under 
          title XIX of the Social Security Act, the supplemental security 
          income program under title XVI of such Act, the beneficiary's 
          employment, and other sources.
  
  SEC. 3. ABLE ACCOUNTS.
  
      (a) Establishment.--
              (1) In general.--Section 529 of the Internal Revenue Code 
          of 1986 is amended by redesignating subsection (f) as 
          subsection (g) and by inserting after subsection (e) the 
          following new subsection:
      ``(f) ABLE Accounts.--
              ``(1) General rules.--For purposes of any other provision 
          of law with respect to a qualified ABLE program and an ABLE 
          account, except as otherwise provided in this subsection--
                      ``(A) a qualified ABLE program and an ABLE account 
                  shall be treated in the same manner as a qualified 
                  tuition program and an account described in subsection 
                  (b)(1)(A)(ii), respectively, are treated, and
                      ``(B) qualified disability expenses with respect to 
                  a program or account described in subparagraph (A) 
                  shall be treated in the same manner as qualified higher 
                  education expenses are treated.
              ``(2) Qualified able program.--For purposes of this 
          subsection, the term `qualified ABLE program' means a program 
          established and maintained by a State or agency or 
          instrumentality thereof--
                      ``(A) under which a person may make contributions 
                  to an ABLE account which is established for the purpose 
                  of meeting the qualified disability expenses of the 
                  designated beneficiary of the account,
                      ``(B) which meets the requirements of the preceding 
                  subsections of this section (as modified by this 
                  subsection), determined by substituting--
                              ``(i) `qualified ABLE program' for 
                          `qualified tuition program', and
                              ``(ii) `ABLE account' for `account', and
                      ``(C) which meets the other requirements of this 
                  subsection.
              ``(3) Qualified disability expenses.--For purposes of this 
          subsection--
                      ``(A) In general.--The term `qualified disability 
                  expenses' means any expenses which are made for the 
                  benefit of an individual with a disability who is a 
                  designated beneficiary.
                      ``(B) Expenses included.--The following expenses 
                  shall be qualified disability expenses if such expenses 
                  are made for the benefit of an individual with a 
                  disability who is a designated beneficiary and are 
                  related to such disability:
                              ``(i) Education.--Expenses for education, 
                          including tuition for preschool thru post-
                          secondary education, books, supplies, and 
                          educational materials related to such 
                          education, tutors, and special education 
                          services.
                              ``(ii) Housing.--Expenses for a primary 
                          residence, including rent, purchase of a 
                          primary residence or an interest in a primary 
                          residence, mortgage payments, real property 
                          taxes, and utility charges.
                              ``(iii) Transportation.--Expenses for 
                          transportation, including the use of mass 
                          transit, the purchase or modification of 
                          vehicles, and moving expenses.
                              ``(iv) Employment support.--Expenses 
                          related to obtaining and maintaining 
                          employment, including job-related training, 
                          assistive technology, and personal assistance 
                          supports.
                              ``(v) Health, prevention, and wellness.--
                          Expenses for health and wellness, including 
                          premiums for health insurance, mental health, 
                          medical, vision, and dental expenses, 
                          habilitation and rehabilitation services, 
                          durable medical equipment, therapy, respite 
                          care, long term services and supports, 
                          nutritional management, communication services 
                          and devices, adaptive equipment, assistive 
                          technology, and personal assistance.
                              ``(vi) Miscellaneous expenses.--Financial 
                          management and administrative services; legal 
                          fees; expenses for oversight; monitoring; home 
                          improvements, and modifications, maintenance 
                          and repairs, at primary residence; or funeral 
                          and burial expenses.
                              ``(vii) Assistive technology and personal 
                          support services.--Expenses for assistive 
                          technology and personal support with respect to 
                          any item described in clauses (i) through (vi).
                              ``(viii) Other approved expenses.--Any 
                          other expenses which are approved by the 
                          Secretary under regulations and consistent with 
                          the purposes of this section.
                      ``(C) Individual with a disability.--
                              ``(i) In general.--Except as provided in 
                          clause (ii), an individual is an individual 
                          with a disability for a year if the individual 
                          (regardless of age)--
                                      ``(I) has a medically determinable 
                                  physical or mental impairment, which 
                                  results in marked and severe functional 
                                  limitations, and which can be expected 
                                  to result in death or which has lasted 
                                  or can be expected to last for a 
                                  continuous period of not less than 12 
                                  month, or
                                      ``(II) is blind.
                              ``(ii) Disability certification required.--
                          An individual shall not be treated as an 
                          individual with a disability for a year unless 
                          the individual--
                                      ``(I) is receiving (or, for 
                                  purposes of title XIX of the Social 
                                  Security Act, is deemed to be, or 
                                  treated as, receiving) benefits under 
                                  the supplemental security income 
                                  program under title XVI of such Act, or 
                                  whose benefits under such program are 
                                  suspended other than by reason of 
                                  misconduct,
                                      ``(II) is receiving disability 
                                  benefits under title II of such Act, or
                                      ``(III) files a disability 
                                  certification with the Secretary for 
                                  such year.
                              ``(iii) Disability certification defined.--
                          The term `disability certification' means, with 
                          respect to an individual, a certification to 
                          the satisfaction of the Secretary by the 
                          designated beneficiary or the parent or 
                          guardian of the designated beneficiary that--
                                      ``(I) the individual meets the 
                                  criteria described in clause (i), and
                                      ``(II) includes a copy of the 
                                  designated beneficiary's diagnosis, 
                                  signed by a physician meeting the 
                                  criteria of section 1861(r)(1) of the 
                                  Social Security Act.
                              ``(iv) Restriction on use of 
                          certification.--No inference may be drawn from 
                          a disability certification for purposes of 
                          establishing eligibility for benefits under 
                          title II or XVI of the Social Security Act.
              ``(4) Rollovers from able accounts.--The limits on 
          contributions pursuant to subsection (b)(6) shall not apply to 
          any amount paid or distributed from an ABLE account to the 
          extent that the amount received is paid, not later than the 
          60th day after the date of such payment or distribution, into--
                      ``(A) another ABLE account for the benefit of--
                              ``(i) the same beneficiary, or
                              ``(ii) an individual who--
                                      ``(I) is the spouse of such 
                                  individual with a disability, or bears 
                                  a relationship to such individual with 
                                  a disability which is described in 
                                  section 152(d)(2), and
                                      ``(II) is also an individual with a 
                                  disability,
                      ``(B) any trust which is described in subparagraph 
                  (A) or (C) of section 1917(d)(4) of the Social Security 
                  Act and which is for the benefit of an individual 
                  described in clause (i) or (ii) of subparagraph (A), or
                      ``(C) a qualified tuition program--
                              ``(i) for the benefit of the designated 
                          beneficiary, or
                              ``(ii) to the credit of another designated 
                          beneficiary under a qualified tuition program 
                          who is a member of the family of the designated 
                          beneficiary with respect to which the 
                          distribution was made.
          The preceding sentence shall not apply to any payment or 
          distribution if it applied to any prior payment or distribution 
          during the 12-month period ending on the date of the payment or 
          distribution.
              ``(5) Transfer to state.--Subject to any outstanding 
          payments due for qualified disability expenses, in the case 
          that the designated beneficiary dies or ceases to be an 
          individual with a disability, all amounts remaining in the 
          qualified ABLE account not in excess of the amount equal to the 
          total medical assistance paid for the designated beneficiary 
          after the establishment of the account, net of any premiums 
          paid from the account or paid by or on behalf of the 
          beneficiary to a Medicaid Buy-In program, under any State 
          Medicaid plan established under title XIX of the Social 
          Security Act shall be distributed to such State upon filing of 
          a claim for payment by such State. For purposes of this 
          paragraph, the State shall be a creditor of an ABLE account and 
          not a beneficiary. Subsection (c)(3) shall not apply to a 
          distribution under the preceding sentence.
              ``(6) Regulations.--Not later than 6 months after the date 
          of the enactment of this section, the Secretary may prescribe 
          such regulations or other guidance as the Secretary determines 
          necessary or appropriate to carry out the purposes of this 
          section, including regulations to prevent fraud and abuse with 
          respect to amounts claimed as qualified disability expenses.''.
              (2) Conforming amendment.--Paragraph (2) of section 6693(a) 
          of the Internal Revenue Code of 1986 such Code is amended by 
          striking ``and'' at the end of subparagraph (D), by striking 
          the period at the end of subparagraph (E) and inserting 
          ``and'', and by inserting after subparagraph (E) the following 
          new subparagraph:
                      ``(F) section 529(d) by reason of 529(f) (relating 
                  to ABLE accounts).''.
      (b) Annual Reports.--
              (1) In general.--The Secretary of the Treasury shall report 
          annually to Congress on the usage of ABLE accounts under 
          section 529(f) of the Internal Revenue Code of 1986.
              (2) Contents of report.--Any report under paragraph (1) 
          shall include--
                      (A) the number of people with an ABLE account,
                      (B) the total amount of contributions to such 
                  accounts,
                      (C) the total amount and nature of distributions 
                  from such accounts,
                      (D) issues relating to the abuse of such accounts, 
                  if any, and
                      (E) the amounts repaid from such accounts to State 
                  Medicaid programs established under title XIX of the 
                  Social Security Act.
      (c) Effective Date.--The amendments made by this section shall 
  apply to taxable years beginning after the date of the enactment of 
  this Act.
  
  SEC. 4. TREATMENT OF ABLE ACCOUNTS UNDER CERTAIN FEDERAL PROGRAMS.
  
      (a) Account Funds Disregarded for Purposes of Certain Other Means-
  Tested Federal Programs.--Notwithstanding any other provision of 
  Federal law that requires consideration of 1 or more financial 
  circumstances of an individual, for the purpose of determining 
  eligibility to receive, or the amount of, any assistance or benefit 
  authorized by such provision to be provided to or for the benefit of 
  such individual, any amount (including earnings thereon) in any ABLE 
  account (as defined in section 529(f) of the Internal Revenue Code of 
  1986) of such individual, and any distribution for qualified disability 
  expenses (as defined in paragraph (3) of such section) shall be 
  disregarded for such purpose with respect to any period during which 
  such individual maintains, makes contributions to, or receives 
  distributions from such ABLE account, except that, in the case of the 
  supplemental security income program under title XVI of the Social 
  Security Act, a distribution for housing expenses (as defined in 
  subparagraph (B)(ii) of such paragraph) shall not be so disregarded, 
  and in the case of such program, only the 1st $100,000 of the amount 
  (including such earnings) in such ABLE account shall be so disregarded.
      (b) Suspension of SSI Benefits During Periods of Excessive Account 
  Funds.--
              (1) In general.--The benefits of an individual under the 
          supplemental security income program under title XVI of the 
          Social Security Act shall not be terminated, but shall be 
          suspended, by reason of excess resources of the individual 
          attributable to an amount in the ABLE account (as defined in 
          section 529(f) of the Internal Revenue Code of 1986) of the 
          individual not disregarded under subsection (a) of this 
          section.
              (2) No impact on medicaid eligibility.--An individual who 
          would be receiving payment of such supplemental security income 
          benefits but for the application of the previous sentence shall 
          be treated for purposes of title XIX of the Social Security Act 
          as if the individual continued to be receiving payment of such 
          benefits.
target: Achieving a Better Life Experience Act of 2011 or the ABLE Act of 2011 - Amends the Internal Revenue Code to establish tax-exempt ABLE accounts to assist an individual with a disability in building an account to pay for qualified disability expenses. Defines "qualified disability expenses" to include expenses for education, a primary residence, transportation, obtaining and maintaining employment, health and wellness, and other personal support expenses.
  
  Treats a qualified ABLE program and an ABLE account in the same manner as a qualified tuition program for income tax purposes (i.e., allowing a tax exemption for such program and an exclusion from gross income of amounts attributable to a contributor to or a beneficiary of a program account). Defines "qualified ABLE program" as a program established and maintained by a state agency under which a person may make contributions to an ABLE account established to pay for qualified disability expenses.
  
  Requires amounts in ABLE accounts to be disregarded in determining eligibility for Medicaid and other means-tested federal programs. Suspends the payment of supplemental security income benefits under title XVI (Supplemental Security Income) of the Social Security Act to an individual during any period in which such individual has excess resources attributable to an ABLE account.
feat_title: To amend the Internal Revenue Code of 1986 to provide for the tax treatment of ABLE accounts established under State programs for the care of family members with disabilities, and for other purposes.