The material presented on this website is for informational and educational purposes only as provided by Summit Independent Living Center, Inc. Any decisions regarding finances should be done with a qualified financial planner.
What is the ABLE Act?
The ABLE Act allows some people with disabilities to create savings accounts to hold money that may be used on necessary expenses without jeopardizing eligibility for Medicaid, SSI and some other federal programs.
The ABLE Act amends Section 529 of the Internal Revenue Service Code of 1986 to create tax-free savings accounts for individuals with disabilities. The bill aims to ease financial strains faced by individuals with disabilities by making tax-free savings accounts available to cover qualified expenses such as education, housing and transportation. The bill supplements, but does not supplant, benefits provided through private insurances, the Medicaid program, the supplemental security income program, the beneficiary’s employment and other sources.
An ABLE account may fund a variety of essential expenses for individuals including medical and dental care, education, community based supports, employment training, assistive technology, housing and transportation.
The ABLE Act provides individuals with disabilities the same types of flexible savings tools that all other Americans have through college savings accounts, health savings accounts and individual retirement accounts.
The legislation also contains a Medicaid pay-back provision when the beneficiary passes away.
It eliminates barriers to work and saving by preventing dollars saved through ABLE accounts from counting against an individual’s eligibility for any federal benefits program.
Read more at: National Down Syndrome Society (NDSS) ABLE Page
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