In 2014, the Achieving a Better Life Experience Act of 2014 or the ABLE Act was signed into law. Under the ABLE Act, certain savings accounts could be established for individuals with disabilities. Such accounts allow for monies to be set aside for an individual with disabilities without disqualifying the individual from public benefits such as Social Security Income (SSI) or Medicaid. The total annual contributions are currently capped at $14,000, but the accounts can grow and be funded up to state mandated limits. Virginia and Maryland limit these accounts to $350,000 while the District of Columbia caps the accounts at $260,000. Various other restrictions apply including restrictions that may impact an individual’s SSI benefit for a period of time and require any remaining amounts in the account to be used to pay back for Medicaid benefits that are received; generally known as a “Medicaid pay-back” provision.
Recently, the ABLE National Resource Center, an organization founded and managed by the National Disability Institute (NDI), went live with an informative website for families and professional advisors interested in learning more about the ABLE Act and establishing an account for an individual with disabilities. In addition, the website provides state specific information since each state has implemented the ABLE Act differently. Families of individuals with disabilities now have another resource in addition to consulting with their professional advisors if they are considering creating an account to ensure such planning fits within their overall goals and objectives. #specialneeds #ABLEact #estateplanning @RealEconImpact