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Establish an ABLE Account for your child

Read about a new savings vehicle for persons with a disability soon to be available in New York

George H. Gray 0 233 Article rating: No rating

ABLE_accountsIt is difficult for your child with a disability to accumulate resources for future discretionary spending or to purchase a “big ticket” item.  Your child is limited to meager savings if he or she is means tested government benefits.  Recognizing this difficulty, Federal Law authorized States to establish ABLE programs to offer a tax favored vehicle for savings.

An Unscientific Survey of ABLE Account Offerings

Learn what other States currently offer as ABLE Accounts and what may be offered in New York

George H. Gray 0 265 Article rating: No rating

ABLE Account OfferingsAt least three States have rolled out ABLE Accounts for use by individuals with a disability.  My survey of the offerings of these three States is not rigorous, instead it is a description of features which they offer and which might be built into an ABLE Account sponsored by New York

Proposed Changes to ABLE Accounts are moving through Congress.

Later this year, persons with a disability will be allowed to establish a savings account.

George H. Gray 0 605 Article rating: No rating
ABLE Accounts are coming.Later this year, persons with a disability will be allowed to establish a savings account called an “Achieving Better Life Experience,” or ABLE Account. These accounts will allow a person with a disability to set aside up to $14,000 per year to be used for the purpose of meeting the “qualified disability expenses.”

Further News on ABLE Accounts

George H. Gray 0 296 Article rating: No rating
Section 529A of the Internal Revenue Code allows the creation of a qualified ABLE program by a State (or agency or instrumentality thereof) under which a separate ABLE account may be established for a disabled individual who is the designated beneficiary and owner of that account. Contributions to an ABLE account are subject to both an annual and a cumulative limit; and, when made by a person other than the designated beneficiary, are treated as non-taxable gifts to the designated beneficiary. Distributions made from an ABLE account for “qualified disability expenses” of the designated beneficiary are not included in the designated beneficiary’s gross income. Most importantly, amounts in the ABLE Account are not considered an available resource for purposes of means tested government benefits, such as SSI and Medicaid.
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