Bill > SB452

This bill establishes the Commonwealth Savers Plan and ImABLE accounts, which are savings accounts designed to help eligible individuals with disabilities save money for qualified disability expenses. Contributions to these ImABLE accounts are made after taxes, meaning no immediate tax deduction is given, but distributions from the accounts are generally exempt from state income taxes, collections, and withdrawal penalties, similar to other tax-advantaged savings plans like 529 plans for education. The bill also clarifies that contributions made by employers to an ImABLE account will not affect how an individual is classified as an employee or independent contractor for legal or tax purposes, and it creates the Virginia ImABLE Fund and Grant Program to provide competitive grants to businesses, nonprofits, and localities for projects that support eligible individuals with expenses related to maintaining their health, independence, and quality of life. The bill also makes changes to tax laws, including provisions for estate tax treatment of ImABLE accounts and allows for emergency regulations to implement these changes.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/SB452