Back in December of 2014 President Obama signed the Achieving a Better Life Experience (ABLE) Act into law. “The ABLE Act authorizes, at the state level, the establishment of programs allowing the families of eligible disabled individuals to open investment accounts for which earnings are tax-exempt and assets are exempt for Medicaid qualification purposes.” An eligible person is someone who became disabled before reaching the age of 26 and who qualifies for supplemental social security benefits. A majority of the states have enacted legislation establishing ABLE programs, but none have gone into effect yet. This article discusses how an ABLE plan is different from a 529 Plans. It is important for people to become fully aware about how these plans work when deciding which approach to take. More opportunities will be available to families with disabled loved ones once these ABLE Act provisions are fully implemented.
See Brian R. Selvin, ABLE Accounts for Families with Disabled Individuals: Important Considerations, Greenbaum Rowe Smith & Davis LLP, April 15, 2016.
