On December 19, 2014, President Obama signed the ABLE (Achieving Better Life Experience) Act into law, giving disabled Americans the ability to have tax-free savings accounts similar to those allowed through 529 college-savings plans. ABLE accounts can provide for a variety of qualified disability expenses, such as personal support services, assistive technology, health and wellness care, education, transportation, costs incurred while seeking and maintaining employment and more.
The plan has been a boon to disabled Americans and their families as it allows tax-exempt savings of up to $100,000 without compromising Social Security eligibility. Additionally, Medicaid coverage is continuous regardless of the amount of money in the ABLE account.
Those who have been diagnosed as disabled before the age of 26 are eligible to create an ABLE account. As long as documentation for the disability diagnosis prior to age 26 exists, the applicant can be any age currently. Annual contributions can equal up to $14,000 (with the maximum allowed in the account to retain ABLE-account privileges being $100,000).
Each state handles its own ABLE account accessibility and Ohio is currently implementing the program with hopes to make it available in early 2016. The Office of the Treasurer is advancing this process. In the meantime, eligible applicants are permitted to apply through other states, so you don’t need to wait to create your ABLE account.
Call the Cincinnati Law Firm Clements, Taylor, Butkovich & Cohen LPA, Co., at 513.721.6500 or use the online form to get in touch with one of our expert disability attorneys.