An ABLE United account can be a freeing experience. The freedom to save more than $2,000 without impacting eligibility for means tested government benefits. Freedom to save and invest based on the goals of the account holder. Freedom to use funds in the account for a variety of expenses that help improve or maintain health, independence, or quality of life.
Once an account has been opened, it’s important for account holders to understand all of the possibilities it allows to save and invest in their futures.
Save more than $16,000 annually.
At ABLE United, we recommend account holders take an honest assessment of their financial goals, as that will help determine how to manage their account appropriately.
It’s important to start each year with a plan on how best to maximize ABLE account contributions. The keys to success are keeping up with the selected investment options, their performance and the ability to make changes to invested funds twice a year.
Save with the help of family and friends.
Anyone may contribute to an ABLE United account electronically through the account Gifting page or through the mail using the Gifting form. Think outside the box – this could include friends and family, as well as a church or civic-based organization.
In order for an account holder to create their Gifting page, login to the account and create an event under the eGift tab. Email or share the unique Gifting page to allow anyone to contribute electronically to the account.
Rollover funds from a 529 College Savings Plan.
Thanks to the Tax Cuts and Jobs Act signed into law last year, families who were saving for higher education expenses for their child with a disability, or who have family members with unused funds, can rollover funds from a 529 college savings account into an ABLE account. These types of rollovers do count towards the annual maximum contribution limit.
Use an ABLE United account with a Special Needs Trust.
Special Needs Trusts (SNT) can work in conjunction with an ABLE United account. If an account holder has both, it’s important to discuss with the trustee or an attorney on how an SNT can fund an ABLE account. An SNT is part of estate planning and can encompass non-cash assets, requires an attorney to set up, and can be costly. ABLE accounts are generally more appealing for everyday use as they are flexible, grow tax-free, and are low-cost to maintain.
We hope you’ll kick off 2019 with ABLE United by opening an account – and for those of you that already are account holders, our hope is that you get the most out of your account and in turn, your future.