Understanding ABLE Accounts: A Tax-Free Savings Option for People with Disabilities
Are you or a loved one living with a disability and struggling to manage finances? If so, an ABLE account might be the solution you’ve been looking for. In this blog post, we’ll explore what ABLE accounts are, who is eligible to open one, and how you can benefit from having one.
What is an ABLE account?
An ABLE account, short for Achieving a Better Life Experience account, is a tax-free savings account designed for individuals with disabilities. It allows people with disabilities to manage their money without jeopardizing government assistance programs like Social Security income or Medicaid.
With an ABLE account, you can deposit up to $17,000 in 2023 and $18,000 in 2024. If you have a job and your employer isn’t contributing to a retirement plan, you can deposit even more money, up to the individual Federal Poverty Level.
Who can get an ABLE account?
To be eligible for an ABLE account, you must have met certain requirements before the age of 26, such as qualifying for SSI, receiving disability benefits, or having a disability certification. You can open an ABLE account if you are at least 18 years old, or a parent or legal guardian can open one on your behalf.
Should you get an ABLE account?
If you’re a person with a disability looking to take control of your finances and save for the future, an ABLE account is a great option. It allows you to make financial decisions independently and save for qualified disability expenses without affecting government assistance programs.
How do you open an ABLE account?
You can’t walk into a bank and open an ABLE account; instead, you’ll need to apply through an ABLE state program. There are about 49 state programs available, and you can apply to any of them regardless of where you live. Once you’ve chosen a program, you can fill out an application online and get help if needed.
In conclusion, an ABLE account can provide individuals with disabilities the opportunity to save for the future, manage their finances independently, and access funds for qualified disability expenses. If you or a loved one could benefit from an ABLE account, consider applying through a state program today.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The content is based on general research and may not be accurate, reliable, or up-to-date. Before making any financial decisions, it is recommended to consult with a professional financial advisor or conduct thorough research to verify the accuracy of the information presented. The author and publisher disclaim any liability for any financial losses or damages incurred as a result of relying on the information provided in this article. Readers are encouraged to independently verify the facts and information before making any financial decisions.