While some of the questions we receive about ABLE United are specific to an individual’s circumstances, many are questions that most people have, regardless of type of disability, age and financial status. Over the next few weeks, we will provide responses to the top five questions our customer service team receives.
Here’s the first, and most common question:
What is an ABLE Account?
Until recently, individuals receiving federal benefits were restricted in the amount of money they could save ($2,000), effectively preventing them from planning for the future. However, through The Stephen Beck Jr. Achieving a Better Life Experience (ABLE) Act, these thresholds are no longer a barrier.
The ABLE Act adds section 529A of the Internal Revenue Code allowing each state to create ABLE programs that offer tax-advantaged savings accounts specifically for individuals with disabilities. These savings and investment accounts allow individuals to save money while maintaining eligibility for federal benefits like Supplemental Security Income (SSI) and Medicaid. The funds in the account grow tax-free and are intended to be used on qualified expenses covering a wide range of categories including housing, transportation, and basic living expenses.
ABLE accounts provide individuals with disabilities an opportunity they may not have otherwise known. Opportunity for financial independence. Opportunity to live in a better home. Opportunity to partner with friends, family members, and organizations to help them achieve their goals. An ABLE account is so much more than a typical financial tool. It is an opportunity that started when families gathered around a dining room table more than a decade ago to develop a way to help their children without hindering them in the future, an opportunity that will level the playing field, and an opportunity for them to have more than $2,000 in assets. ABLE United accounts make these types of opportunities for individuals with disabilities a reality.
Check back as we cover more commonly asked questions about ABLE United.