What is The Achieving a Better Life Experience (ABLE) Act?
If you have a special needs child who’s dependent on you for care, chances are you’ve probably heard some buzz about The Achieving a Better Life Experience Act (ABLE for short). Although you might have heard about it, you might not exactly know what it is and if it’s the right financial option for your special needs family planning strategy. Rest assured, we at Secure Planning Strategies are looking for the most up-to-date information on the matter but, for now, let’s talk about what we do know so you can stay informed.
According to http://crenshaw.house.gov/index.cfm/able-act, The Achieving a Better Life Experience Act is as follows:
The ABLE Act (H.R. 647/S. 313), introduced in the 113th Congress by Congressman Crenshaw and Senator Bob Casey (D-PA), is federal legislation that aims to ease financial strains faced by individuals with disabilities by making tax-free savings accounts available to cover qualified expenses such as education, housing, and transportation.
As of December 3, 2014, the ABLE Act was approved legislation that currently allows a disabled participant’s ABLE account funds to grow in a tax-free setting without the funds being factored into the person’s government benefit, such as Social Security and Medicaid which has a limit of $2000.00 in cash and assets. The ABLE account can be an appropriate planning strategy tool and it can be used along with a special needs trust but there are restrictions that might influence the effectiveness of ABLE account strategy.
There are certain situations where an ABLE account is appropriate and it is important to obtain professional advice on this form of strategy planning. To see if your family situation is best suited for the ABLE account, please give our office a call at: (248) 827-2580 or e-mail us at: [email protected].