Legislature OKs Additional Protections for Enable Savings Plan

On April 9, the Nebraska Legislature passed legislation (LB 1240) aimed at strengthening protections for the Enable Savings Plan, which serves individuals with disabilities.

Introduced by Sen. Dave Murman and prioritized by Speaker John Arch, LB 1240 enhances existing law that protects Enable assets from Medicaid estate recovery — sometimes called “clawbacks” — after an account owner has passed away. LB 1240 specifies that these protections apply even after funds are distributed, providing additional confidence in the program.

Enable is sponsored by the State of Nebraska and administered by the State Treasurer. The program is now in its tenth year of operation.

“Enable helps individuals with disabilities achieve their best life,” State Treasurer Joey Spellerberg said. “Passage of LB 1240 sends a clear message: money saved for someone with a disability belongs to that individual and their family, not the state. Thanks to Senator Murman for working with my office to add this extra protection for families counting on the Enable Savings Plan.”

LB 1240 now goes to Gov. Jim Pillen for his consideration.

Enable provides essential financial options for individuals with disabilities who were diagnosed before age 46. Enable offers checking, savings, and target-risk investment options with tax-free earnings and withdrawals for qualified disability expenses.

Family and friends can contribute directly to Enable accounts using the U-gift platform. Those who want to provide support for Enable participants can do so through the fee-free “Give to Enable” support program. Contributors to Enable accounts can deduct up to $10,000 a year from their Nebraska taxable income.

Visit EnableSavings.com for more information and easy-to-use online enrollment.

About the State Treasurer’s Office: The Nebraska State Treasurer serves as the state’s chief financial officer and is responsible for the safekeeping and management of Nebraska’s public funds. The office administers the Nebraska Educational Savings Trust (NEST 529) and the Enable Savings Plan; manages and returns unclaimed property; collects and disburses child support payments; and promotes transparency in state spending. Learn more at treasurer.nebraska.gov, or follow us on Facebook, LinkedIn, and X.