Adjustment to ABLE Law Broadens Availability

Initially, when the Federal government passed the Achieving a Better Life Experience  (ABLE) law, which allowed individuals with disabilities to save up to $100,000 in a bank account without losing government benefits such as Medicaid and Social Security Income, it was left to individual states to enact legislation to implement such accounts.  A recent “tweak” to this legislation will enable people with disabilities to access these accounts across state lines, regardless of where they reside, as early as February or March.  Such legislation will assist individuals with disabilities in states whose legislatures have been slow to adopt enabling legislation.  Click here to view a chart of which states have enacted such enabling legislation.

To be eligible for an ABLE account, an individual must have a disability that originated before the age of 26.

Funds in the accounts can be used to pay for education, health care, transportation, housing and other expenses. Interest earned on savings in the accounts will be tax-free.

Source for article: “Able Accounts May Be Available Sooner Than Expected” by Michael Diament, January 11, 2016 Disability Scoop.