Senate Passes Kipp Bill to Extend Financial Freedom for People with Disabilities

SB25-302 would extend the ColoradoABLE tax exemption to allow people with disabilities to save money without losing benefits

DENVER, CO – The Senate today passed legislation to allow people with disabilities to continue saving money with tax deductible investments in a ColoradoABLE (Achieving a Better Life Experience) account that does not count against the asset limit for receiving federal benefits like Social Security Income (SSI) and Medicaid. 

SB25-302, sponsored by Senator Cathy Kipp, D-Fort Collins, would extend the ColoradoABLE program which is set to expire at the end of 2025.

“People with disabilities deserve the same freedom as able-bodied people to save toward their own financial security,” said Kipp. “Without this program, people with disabilities on SSI cannot have more than $2,000 in assets each month, which penalizes them for saving money or earning a modest income and can trap them in a cycle of poverty. This program is a lifeline, providing a safe and legal way to achieve financial independence while retaining vital benefits.”

According to the ColoradoABLE program, there are currently about 3,000 total accounts with an average size of $11,000 in assets. ColoradoABLE accounts have annual and lifetime contribution limits. In 2025, the annual limit was $33,060 if an individual had earned income, or $19,000 if not. The additional contribution amount is intended as an incentive for individuals to have the dignity of work to build confidence, autonomy, and contribute to society. The lifetime contribution limit of a ColoradABLE account is $500,000. Many accounts are used on a day-to-day basis to pay for housing, food, basic living expenses, transportation, assistive technology, and personal support services. 

SB25-302 now heads to the House for further consideration. Track its progress HERE.