In late 2014, Congress passed and the President signed into law the Achieving a Better Life Experience (ABLE) Act of 2014, which paves the way for millions of disabled Americans to have tax-free accounts to help them save for their disability expenses. The key provisions of ABLE allows individuals with disabilities, and those who provide support to them, to open savings accounts for disability-related expenses without risking Medicaid coverage and other federal benefits, as long as the balance in such accounts does not exceed $100,000, and without risking eligibility for Supplemental Security Income (SSI) benefits. Despite the passage of the new law, many people do not understand the basic provisions of ABLE, such as:
What is an ABLE account and who can open one?
What permissible expenses are covered?
What are the benefits?
What are some of the limitations?
For more information on ABLE, see this outstanding article by James Canup, "What Does "ABLE" Mean?"