NEWS FLASH! The US government has now passed the ABLE Act, allowing people who qualified with a disability by the age of 26 to have a special savings account of up to $100,000 without affecting public benefits such as SSI. The new law, which permits up to $14,000 to be added each year up to the maximum allowed, permits people with disabilities to have a tax-free ABLE savings account for their benefit, including savings for education, purchase of a home, employment supports, training, medical needs, and other benefits. |This is a terrific change in the law, which previously prevented anyone from having more than $2,000 in assets in their name. This is the most important change in disabilities law since the original Americans with Disabilities Act passed in 1990.
Details include the requirement that the individual have a qualifying disability prior to the age of 26. Each state will administer the ABLE accounts, set to be ready by the end of 2015. They will be set up similarly to the 529 college accounts. A word of caution: in the meantime, do not allow your assets to exceed the current $2000 limit!
Be sure to watch President Obama’s State of the Union address, when Sara Wolff, a young woman activist with Down’s Syndrome, will be on hand when the president mentions the ABLE Act!