ABLE ACCOUNT: Is it the right tool for me? - Part One

There are many unique components of special needs planning, one of which is to ensure that individuals with special needs remain eligible for important needs-based government benefits such as Supplemental Security Income (SSI) and Medicaid.

Given the low asset limits associated with many needs-based benefit programs, it is difficult for individuals with special needs to save substantial sums of money, without jeopardizing their benefits eligibility.

ABLE Accounts – The Basics

In 2014, the ABLE (“Achieving a Better Life Experience”) Act was signed into law. The ABLE Act is a federal law that allows states to establish a savings program for persons with disabilities. The program is modeled after the 529 savings accounts. ABLE accounts may be used to accumulate savings, with certain restrictions, for use by a beneficiary with a disability.

An ABLE account may be established by any contributor (a parent, friend, family member or the person with a disability) for the benefit of an eligible beneficiary of any age so long as that person can establish they met the criteria prior to age 26. An eligible beneficiary is an individual who meets the standard for disability prior to turning the age of 26. A recipient of SSI or SSDI satisfies this requirement while those who do not receive such benefits must be certified under the act.

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 this Website.