Under the best of circumstances, it can be difficult to find the right option to save for a child’s future.  Choosing the best way to save for college or give a child a head start by putting together a nest egg is a challenge that many parents face.  But what if a child has a disability or impairment that might cloud their future, making it impossible to project just what their needs will be down the road?  Will they go to college?  Will they be able to achieve financial independence when they reach adulthood?  What kind of health expenses will they incur throughout their life?  Recently I proposed a bill that would establish a savings account that would help provide American families who face this type of situation with some peace of mind.

 

The Financial Security Accounts for Individuals with Disabilities Act of 2007 was the result of a conversation I had with a couple who are the parents of a child afflicted with Down’s syndrome.  The couple pointed out that while the federal government provides accounts with tax advantages and other assistance to families to help save for a child’s college education, no such accounts exist to provide for children with disabilities to provide for their future.  Furthermore, since the severity of many disabilities can differ drastically, setting up a college fund poses a risk because of the penalties if their child cannot attend college.

 

This bill I filed would modify the IRS tax code to establish tax exempt Financial Security Accounts for Individuals with Disabilities (FAID’s).  These FAID’s could be used to pay for things such as educational expenses, medical and dental care not covered by private health insurance, community based support services, and, after the age of 18, housing and transportation.  In short, these accounts help families afford the extra care and support a child with a disability may require and help prepare them financially, vocationally, and mentally to be independent in adulthood.

 

Children with disabilities require special services and these services always come with a price.  Parents who want the best for their children want to plan ahead to make sure their child has access to these services.  However, it is sometimes impossible to foresee just what kind their child might need or what kind of expectations to have for their future.  A child with a disability can graduate from college and lead an independent life, or require a closely supervised environment.  These individuals should not be penalized because their needs do not fit in the criteria of a traditional account.  This new account would be the first of its kind – one that actually address these needs.  For individuals with disabilities and their families, the future is always uncertain.  These accounts would help provide some security and a way to help families support both their child’s needs today and well into adulthood.