ABLE Savings Account
Do you have an ABLE Savings Account? Simply put, ABLE accounts are tax advantage savings accounts for individuals with disabilities. The Stephen Beck Jr. Achieving a Better Life Experience Act (ABLE) passed in 2014 allows someone who is disabled to have a savings account that is not considered in the “means tested” benefit of SSI. When a disabled individual receives SSI any liquid asset over $2,000 is counted against their SSI benefit. This helps people with disabilities and their families increase financial independence, ease financial hardships, and improve quality of life.
Basics of an ABLE account
Eligibility: Participants are eligible from disability onset until they are 26 years old.
Contribution limit: Participants can contribute up to $12,000 per year and have a balance of $100,000 or less.
Qualified expenses: Expenses related to the designated beneficiaries: education; housing; transportation; employment training and support; assistive technology; healthcare, prevention and wellness; financial management and administrative services; legal fees; account oversight and monitoring; funeral and burial expenses; and basic living expenses.
The IRS recommends people to consult their state for a specific rules about ABLE accounts.
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