ABLE (Achieving a Better Live Experience) accounts are a great resource for children and adults who have been diagnosed with a disability. It allows people with disabilities to keep more than $100,000.00 and still maintain their SSI benefits.
When Matt and I had our first child one of the very first things we set up for him was a 529 college savings plan. We wanted to financially prepare for his education. When Jackson was diagnosed with autism we weren’t sure what to do with this account. The drawback to the 529 plan is that the money can only be spent on education. Not knowing where our new path would take us we decided to stop contributing to this account and look for something new.
When my husband and I learned about these accounts we closed their college accounts and transferred the money to these instead. What I love is that if the money is spent on qualified disability expenses then they are federally income tax free.
Both of my children now have their own accounts. This gives us peace of mind that we can still build wealth for them and this time the money can be spent on things other than education.
Here are 4 fun facts about ABLE accounts
1. It allows a person with a disability to open their own account
2. It allows individuals to keep $100,000.00 in a bank account
3. It allows the money grows tax deferred
4. All of this, and they can maintain their SSI benefits
The ABLE Act was signed into law on December 19, 2014 yet very few people utilize this important account.
If you want to learn more subscribe to our email list and watch our All About ABLE accounts webinar.