On December 19th, 2019, the Stephen Beck, Jr. Achieving a Better Life Experience Act—known as the ABLE Act—will be five years old. Why are we excited? Because this five-year-old has influenced 41,000 people to open ABLE accounts that can earn tax-free income.
The ABLE Act allows an estimated eight million Americans with disabilities to save money for qualified disability expenses for their short-term needs and long-term future. ABLE account holders can use the funds for qualified disability-related expenses including housing and maintenance, as well as costs related to employment, transportation, health, technology and financial and benefits planning.
Forty-two states and the District of Columbia have ABLE programs. Fortunately, Georgia is one of the states with an ABLE program. Even if you live in a state that hasn’t established an ABLE program, you can enroll in any state’s program if they accept out-of-state residents, which many do. State ABLE programs are managing more than $220 million in savings and investment accounts.
For the most part, these ABLE savings accounts don’t affect a person's eligibility for Supplemental Security Insurance—known as SSI--, Medicaid and other public benefits. ABLE account owners, who are SSI beneficiaries, are no longer stuck in a life of poverty or have to face the $2,000 asset limit and be disqualified from receiving SSI benefits.
Learn more about Georgia's ABLE program at the Georgia Council on Developmental Disability website at GCDD.org. To learn about ABLE accounts in general as well as other state-specific ABLE programs, visit the ABLE National Resource Center at ABLENRC.org.
If you have questions about planning for a disabled loved one, Kimbrough Law may be able to help. Just give us a call.