ABLE Account

Acheiving a Better Life Experience Act of 2014

What is an ABLE Account?

An ABLE account is a tax advantage savings account for people with significant disabilities. ABLE accounts were created by the Achieving a Better Life Experience Act of 2014, better known as the ABLE Act. These accounts allow individuals with disabilities to save money for the costs associated with living with a disability without losing SSI, SSDI or Medicaid Benefits. Allowable expenses may include housing, education, transportation, employment training and support, assistive technology, personal support services, health care expenses, financial management, or any other expense that is a result of living with a disability.

In June 2017, the first states began to offer these accounts. Not all states currently offer ABLE accounts, and some states will choose not to offer them. Individuals with disabilities can open an account in any state, regardless of where they live, as long as that state permits. Information regarding ABLE accounts can be found on the ABLE National Resource Center website. In addition, it will be important to find out the specific information regarding ABLE accounts in the state you choose. Click here to learn more about ABLE accounts. Each state has established their own requirements for ABLE accounts. .Click here to research different state programs for ABLE accounts.

Here are some of the highlights regarding ABLE accounts.

• The individual with a disability is the owner of the account. Each individu.al can have only one ABLE account.

• If you receive SSI and/or SSDI and are under the age of 26 you are automatically eligible to open an ABLE Account.

• If you do not receive SSI and/or SSDI and meet the age and onset of disability requirements you may still be eligible to open an ABLE account. You must meet criteria regarding significant functional limitations and receive a letter of certification from a licensed physician.

• You do not need to be under 26 to open the account as long as the age of onset of your disability is prior to age 26.

• Anyone can contribute to an ABLE account – including family, friends, neighbors, advocates, however there is a $14,000 limit per individual contributor for a single tax year.

• For individuals who receive SSI, the first $100,000 is exempt from the $2,000 individual resource limit. If the account exceeds that amount the SSI account is suspended until the account is below that limit. This has no effect Medicaid eligibility.

• Upon death of the beneficiary, the state where the individual lived may recoup all or part of the remaining funds in the account, equal to what the state spent through the state Medicaid program.

• Total limits to ABLE accounts will vary per state.

This is not a comprehensive listing of all the rules and requirements for ABLE accounts. It is recommended that you seek the advice of a financial planner to assist you in determining the best way to plan for your financial future.