At ABLE United, we’re thankful for our account holders – and also for the significant strides made this year that make it easier than ever to save for their futures.
Removal of Medicaid Recovery
The Florida legislature took the first steps to amend Florida ABLE statutes and remove Medicaid recovery from ABLE United accounts. The implementing bill clarifies that any remaining funds in an ABLE account must first be distributed for qualified disability expenses then transferred to the estate of the designated beneficiary. Additionally, Florida’s Medicaid program may not file a claim for Medicaid recovery of funds in an ABLE account.
These changes will be in effect until June 2019. The hope is that legislation introduced in the 2019 session will make this change permanent.
529 College Saving Rollovers
Thanks to the Tax Cuts and Jobs Act signed into law last year, families can rollover funds from a 529 college savings account into an ABLE account. Families who were saving for higher education expenses for their child with a disability now have the opportunity to rollover funds to an ABLE account – although, these types of rollovers do count towards the $15,000 annual maximum contribution limit.
So, if there is a remaining balance in the 529 college savings account after completing this rollover, we encourage you to take advantage of initiating another rollover each calendar year.
As the year winds down, it’s important to start planning your final contributions for 2018 – account holders can contribute a total of $15,000 to their accounts this calendar year. The contribution limit will then reset on January 1, 2019, which allows the opportunity to save up to $15,000 next year.
We look forward to all that’s in store for the future and introducing our account enhancements in the coming weeks.