ABLE accounts offer a significant opportunity for individuals with disabilities to save and invest for the future. These accounts, authorized by the Achieving a Better Life Experience (ABLE) Act of 2014, allow eligible individuals to accumulate assets without jeopardizing their access to crucial public benefits, such as Supplemental Security Income (SSI) and Medicaid.
Established in 2016, ABLE accounts are designed to cover a range of qualified disability expenses, including education, housing, transportation, healthcare, and other essential needs. Contributions to ABLE accounts can be made by the beneficiary, family members, and friends. The funds grow tax-free, and withdrawals for qualified disability expenses are also tax-free.
To be eligible for an ABLE account, an individual must have a significant disability that began before age 26. If someone meets this age requirement and is receiving SSI or Social Security Disability Insurance (SSDI), they are automatically eligible. Individuals who do not receive these benefits may still qualify if they meet specific disability criteria and have a written diagnosis from a licensed physician.
ABLE accounts represent a powerful tool for promoting financial empowerment and improving the quality of life for people with disabilities. They offer a path to greater financial security and independence, allowing individuals to save for future needs and achieve their goals.
ABLE Accounts Help People with Disabilities Save and Invest
ABLE accounts are special savings and investment accounts for people with disabilities. Created by the Achieving a Better Life Experience (ABLE) Act in 2014, these accounts allow individuals to save money without impacting their eligibility for certain public benefits like Supplemental Security Income (SSI) and Medicaid. Since becoming available in 2016, ABLE accounts have provided a valuable tool for financial independence and security for people with disabilities.
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