The Able (Achieving a Better Life Experience) Act is an amendment to the IRS 529 code that allows the same benefits for the disabled as it does the non-disabled. Under the 529 IRS code parents and others can put money away for a child to use for college without the child incurring the tax liability on the growth. With the ABLE Act, parents and others can contribute to an ABLE account for their disabled child to use without incurring the tax liability and without affecting their ongoing ability to receive federal aid such as Medicaid or Social Security Income. Like the 529 college fund, the 529 ABLE account has the yearly deposit limit of $14000.00. Also like the 529 college fund, contributions into the 529 ABLE account can continue until the child reaches age 26. If a child is currently receiving SSI or SSDI benefits, they are eligible to have an ABLE Account.
ABLE Account funds can be used for “qualified” expenses. These expenses include housing, education, caretakers, offset medical or equipment costs. The beneficiary can control use of the funds. The funds can also be used for administrative and/or financial management services. Most importantly, the funds can be used for enhance and improve function and independence in living a full life.
The biggest question that comes up, is “What if my state doesn’t have an established ABLE program?” It is not necessary for you to live in a state with an established program in order to establish an account. Unless, the state is Florida, Kentucky, or Vermont.
Another frequent question is “How do I know how much money I will need?” This is the purpose of the Medical Cost Projections. Nurse Sandi and her team can help determine the needs across your life span. These needs include medical expenses, equipment needs and replacement cycle, education, training, transportation, caregiving, and living expenses.