Individuals with disabilities can now contribute to ABLE accounts due to the ABLE Act, but what exactly does that mean?
ABLE accounts are often mentioned when discussing disability benefits, but many remain unaware of what they entail. ABLE accounts can make a world of difference to qualifying individuals, and Disability Associates wants to make sure that you have all of the information you need to understand these account benefits fully. Here’s what you should know about the ABLE Act and ABLE accounts.
What Is The ABLE Act?
The ABLE (Achieving a Better Life Experience) Act was passed in 2014 and allows individual states to create tax savings programs for eligible people with disabilities.
What Is An ABLE Account?
ABLE accounts are tax-advantaged savings accounts for qualifying individuals and their families. Income earned by these accounts is not taxed. Also, the money in the account is only to be used for qualifying disability expenses, and the beneficiary is the account owner. While contributions made to the account are not tax-deductible, some states may allow them to be deducted.
Why Should I Open An ABLE Account?
To keep benefits such as SSI, the government requires the beneficiary to have no more than $2000 in their savings account to remain eligible. Beneficiaries have to keep a limited amount of money in their accounts to continue receiving public assistance. However, they also have additional costs that are not being recognized nor covered by the public.
With this said, the ABLE Act was the first to recognize the added living costs that people with disabilities face and have allowed ABLE accounts to be created so that they can save up money for additional charges without having to worry about losing public benefits.
Having the ability to save up money to pay for medical expenses not covered by insurance, living expenses, food, and more can be life-changing. People with disabilities should not have to worry about their costs or to save “too much” money for their future. The ABLE Act is the first step in helping this countrywide issue, and all qualifying individuals should take advantage of ABLE accounts.
ABLE accounts can be tricky, and we understand that you may still have questions about your individual needs, or an ABLE account may be the subject of an upcoming court case. If this is true for you, please do not hesitate to contact Disability Associates today.
Our team views our clients as more than just another case. We build genuine relationships with every one of our clients to ensure that they are comfortable during this stressful time. We value honesty, good communication, compassion and implement these values with every client.