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Bill

SB 452

Commonwealth Savers Plan; ImABLE accounts established, tax treatment.

2026 Regular Session Introduced by Emily Jordan

Virginia establishes tax-advantaged ImABLE savings accounts for disabled individuals, enabling tax-free savings growth for disability-related expenses while preserving means-tested benefit eligibility.

Continued to next session in Finance and Appropriations (15-Y 0-N)
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Bill Summary · SB 452

Legislative bill overview

SB 452 establishes Virginia's "Commonwealth Savers Plan," which creates ImABLE accounts—tax-advantaged savings accounts for individuals with disabilities and their families. The bill defines the tax treatment of these accounts under Virginia state law to align with federal ImABLE (Achieving a Better Life Experience) account rules, allowing tax-free growth on savings designated for disability-related expenses.

Why is this important

ImABLE accounts provide a critical financial planning tool for disabled individuals and families, enabling them to save up to $17,000 annually (federally) without affecting means-tested benefits like SSI or Medicaid. This addresses a significant gap where disabled individuals previously faced a choice between maintaining benefit eligibility or building personal savings, directly impacting long-term financial security and independence for a vulnerable population.

Potential points of contention

  • State revenue impact: Tax-exemption for account earnings represents foregone state tax revenue; the fiscal impact statement should clarify projected costs and whether this is affordable within budget constraints
  • Administrative complexity: States must establish compliance mechanisms to prevent abuse and ensure accounts are used only for qualified disability expenses, requiring new state infrastructure
  • Equity concerns: Access depends on family resources and financial literacy; low-income disabled individuals may struggle to contribute even if eligible, potentially creating a benefit primarily for higher-income families

Compiled from official sources — confirm details with the bill’s official record.

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