If you have a disability, you may be interested in opening an ABLE (Achieving a Better Life Experience) account. These are intended to help people with disabilities and those who care for them to save so they can pay for disability-related expenses.
When you’re living with a disability, you often have a great many expenses related to your disability. In the past, however, people on certain means-tested benefit programs like Supplemental Security Income (SSI) could not save very much money, even if it was to cover these expenses. With an ABLE account, you can.
The money receives a tax advantage. While contributions to ABLE accounts are not tax deductible, the earnings on the money are not taxed as long as you use the money for qualifying expenses.
Qualifying expenses include housing, transportation, education, health, wellness and prevention, employment training, employment support, assistive technology and personal support services, for example.
These accounts are especially beneficial for people on Supplemental Security Income (SSI) or Medicaid. That’s because the funds in an ABLE account are generally not counted against you when determining eligibility for these and other means-tested benefit programs.
A few of the features
You can now put more money into your ABLE account than you could in the past — up to $15,000 from friends or family, and another $12,490 in money you earn. And, if you earn money, you may qualify for the federal saver’s credit.
ABLE accounts are generally state-run, like 529 college savings plans. Moreover, you can roll your unused 529 plan money into your ABLE account.
While you can only have one ABLE account, you can have one in addition to any special needs trust or pooled trust you may already have.
An ABLE account could provide you with a great deal of flexibility in meeting your disability-related expenses. If you have questions, talk to an ABLE account representative.
For more information about opening an ABLE account, visit: https://www.ablenrc.org/get-started/how-do-i-enroll-in-a-program/