Last month the House of Representatives, by a vote of 404 to 17, passed H.R.647, the “Achieving a Better Life Experience (ABLE) Act of 2014,” which would provide for a new type of tax-advantaged savings program that allows individuals with disabilities to work, save, and live independently without losing access to Medicaid and Supplemental Security Income (SSI).
Eligibility is limited to those 26 and under, with a $14,000 cap on yearly contributions. A total of $100,000 tax-free can be accumulated in an ABLE account, and is available to one per person.
Previously, individuals with disabilities could not have assets totaling more than $2,000 without forfeiting eligibility for government programs like Medicaid, which is often the only health-care option available for those with significant disabilities.
This affords young people, and their family, the ability to save for the future as well as possibly pursue meaningful work that they otherwise would have avoided for fear of losing governmental benefits that they desperately need.
Please feel free to contact our office for more information on the ABLE Act may benefit you. 856-857-6007