No matter which state you live in, you can open an ABLE account in most states with an ABLE program. ABLE accounts allow people with disabilities to set aside up to $14,000 a year in tax-free savings accounts without affecting their eligibility for government benefits. The federal Achieving a Better Life Experience (ABLE) Act enabled states to create their own programs to enact the law. So far, 17 states have ABLE programs, according to the ABLE National Resource Center.
States with an ABLE Program
Currently, the states with an ABLE program are: Alaska, Florida, Illinois, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, Nevada, North Carolina, Ohio, Oregon, Rhode Island, Tennessee, Vermont and Virginia. Most offer enrollment to those who live out-of-state. Also, another state, Pennsylvania, is about to open enrollment. For details, click here. For up-to-date details on states with an ABLE program, visit the ABLE National Resource Center’s website.
Under the ABLE Act, the tax-free savings accounts can pay for qualified expenses such as treatments, education, housing and health care, among other things. The existence of the accounts will not compromise the individual’s ability to qualify for benefits like SSI or Medicaid as long as the account balance does not exceed $100,000.
Read our blog post about Louisiana’s upcoming ABLE program. Louisiana offers state tax incentives, but not all the benefits that other states with an ABLE program offer. Which program is best for you depends on your individual situation. In many cases, we find that ABLE is a useful tool to use in partnership with a special needs trust.
To discuss whether an ABLE account is the right move for you or a loved one, contact us today.
Revised and published with permission from the American Society of Special Needs Planners.