Information regarding ABLE (Achieving a Better Life Experience) accounts
This new law allows persons with a disability and that person’s family to put money into a special tax advantaged account with an balance up to $100,000 that will not count against the $2,000 Supplemental Security Income (SSI) resource limit. The following is a Press Release that was sent out by the Aging and Disabilities Services Division of the State of Nevada:
ABLE Accounts (Achieving a Better Life Experience)
The Achieving a Better Life Experience (ABLE) Act was recently passed by the U.S. Congress and signed by President Obama. Nevada adopted this into law during the 2015 Legislature through SB 419. Under the new law, a person with a disability and that person’s family may put money into a special tax-advantaged account. The first $100,000 in an ABLE account will not count against the $2000 Supplemental Security Income (SSI) resource limit, nor will it count against asset limits other programs, such as Medical Assistance, may have.
This new work incentive is a big deal: It means that if you get a job, you can start saving up some money without losing your benefits.
As with other types of tax-advantaged accounts, like 529 educational expense accounts and retirement accounts, ABLE accounts have restrictions:
- They are only for people whose disabilities began before they turned 26.
- They can only be opened through specific programs or institutions.
- A person with a disability and that person’s family may not contribute more than a combined total of $14,000 in 2015. The yearly contribution may increase a bit each year.
- Money in an ABLE account can only be used for specific things such as:
- Help getting and keeping work
- Health care
- Assistive technology
- Other approved expenses
- A person can only have one ABLE account
You cannot open an ABLE account yet – Aging and Disability Services Division along with the State Treasurer’s Office is working to understand the necessary requirements and prepare the necessary procedures to move forward in making ABLE accounts a reality in Nevada.
Keep your eyes open for the news on ABLE accounts, since you may be able to make your first contributions later this year.
Follow our progress at: http://adsd.nv.gov