Recently, President Obama signed the Achieving a Better Life Experience (ABLE) act into an official law. ABLE allows those who are disabled or their families to save money in a tax-free savings account to use for certain life expenses. Before this, if a disable person saved money for these purposes , they would have been disqualified from receiving Social Security and Medicaid benefits.
With ABLE, disabled individuals can now accumulate up to $100,000 of “ABLE Assets” without being denied aid. Previously, saving any more than $2,000 disqualified individuals from receiving other benefits.
How can the ABLE law help me?
There are a couple qualifications for the ABLE law:
- You must have been diagnosed with a disability (that is certified under rules soon to be written by the IRS) before the age of 26. You can be older than 26 and still receive ABLE benefits, you must be diagnosed before that age.
- You can only have one ABLE account. If this account contains more than $100,000, Supplemental Security Insurance (SSI) benefits will be suspended but not terminated. This means that the you cannot receive SSI checks, but would still be eligible for the SSI program.
- Money from this ABLE account can be used to cover health care costs, employment, education, housing,transportation, and other expenses. The funds can supplement but not replace benefits provided by Medicaid, Social Security, and private insurance. They won’t jeopardize the eligibility for federal benefit programs for any dependents of the ABLE account holder.
You can read more about the official law here.
Managing finances associated with a disability can be stressful, confusing, and filled with questions. If you or a loved one has a disability that prevents them from working or being gainfully employed, Summit Disability Law Group can help. We are here to answer questions you may have, and help you take control of this challenge. Give us a call at (801)890-1030, or visit our webpage here.