The Social Security Administration has recently released the program operations manual system (POMS) for ABLE accounts. “An Achieving a Better Life Experience (ABLE) account is a type of tax-advantaged account that can be used to save funds for the disability-related expenses of the account’s designated beneficiary, who must be blind or disabled by a condition that began prior to the individual’s 26th birthday.” ABLE programs are established and maintained by the states where eligible individuals live. This article discusses and defines the key terms that relate to ABLE accounts. It discusses when to exclude ABLE account contributions as well as balances, earnings, and distributions. The article then talks about when to count the ABLE account balances and distributions. People will need to understand how to verify, document, and record the balances and distributions of ABLE accounts.
See Program Operations Manual System (POMS), Social Security Administration, December 18, 2015.
