ABLE accounts have tax benefits similar to 529 accounts. Qualified distributions
from the account are not counted as taxable to either the contributor
or the beneficiary. Qualified distributions include expenses paid for
the benefit of the beneficiary related to: education, housing, transportation,
employment training and support, assistive technology and personal support
services, health, prevention and wellness, financial management and administrative
services, legal fees, expenses for oversight and monitoring, funeral and
burial expenses, and any other expenses approved by the Secretary of Treasury.
In addition, earnings on the ABLE account are not taxable to the contributor
or to the beneficiary. Contributions, however, are made from post-tax income.
Finally, assets in an ABLE account may be rolled over to another ABLE account
for the benefit of another qualified individual who is a brother, sister,
stepbrother, or stepsister of the beneficiary.
Please call us if you would like to learn more about an ABLE account and
how it might help you or a loved one. We are always happy to hear from
you! We can be reached at (203) 651-5521 or through the contact form on