ABLE (Achieving a Better Life Experience) Act

Passed by Congress in December 2014, the Achieving a Better Life Experience (ABLE) Act enables the creation of special savings accounts by individuals with disabilities or their families called Section 529A accounts. The ABLE accounts will allow individuals with disabilities to open special accounts where they can save up to $100,000 without risking losing their eligibility for Social Security or Medicaid.  Funds accrued in these accounts can be used to pay for education, health care, transportation, housing and other expenses.  Under current gift-tax limitations, as much as $14,000 may be contributed annually to the account.  Interest earned on savings will be tax-free.