We have previously told you about recently enacted federal legislation, the Achieving a Better Life Experience Act of 2014 (the “ABLE Act”), which allows persons with disabilities to establish tax favored savings accounts which can be used to pay for expenses related to their disabilities.
A recent article highlights the dilemma faced by people with disabilities who can be disqualified from government benefit programs on which they rely, such as Medicaid or Supplemental Security Income, if they accumulate more than just a few thousand dollars through part time employment or by accepting cash from family or friends. As the article illustrates, ABLE accounts provide a way around this dilemma.
While only a handful of states have actually begun offering ABLE accounts, some of those states allow nonresidents to participate in their programs. ABLE accounts can make it easier for people with disabilities to accumulate a financial nest egg for the future without compromising their eligibility for the government programs on which they rely.
For additional in depth information, please see our previous blog posts: “ABLE Accounts: A New Savings Account for People with Disabilities” dated Jan 15, 2015; and, “Almost ABLE: An Update on Savings Accounts for People with Disabilities” dated July 16, 2015.