New Law Offers Tax-Free Savings for People With Disabilities Later this year, families of children with disabilities will be able to open special tax-free savings accounts of up to $100,000 without risking their eligibility for Social Security and other government programs—including Medicaid, which has no savings account cap. President Obama signed the Achieving a Better Life Experience Act in ... News in Brief
Free
News in Brief  |   February 01, 2015
New Law Offers Tax-Free Savings for People With Disabilities
Author Notes
Article Information
Regulatory, Legislative & Advocacy / News in Brief
News in Brief   |   February 01, 2015
New Law Offers Tax-Free Savings for People With Disabilities
The ASHA Leader, February 2015, Vol. 20, 12. doi:10.1044/leader.NIB5.20022015.12
The ASHA Leader, February 2015, Vol. 20, 12. doi:10.1044/leader.NIB5.20022015.12
Later this year, families of children with disabilities will be able to open special tax-free savings accounts of up to $100,000 without risking their eligibility for Social Security and other government programs—including Medicaid, which has no savings account cap.
President Obama signed the Achieving a Better Life Experience Act in December, eliminating regulations that left people ineligible for benefits if savings topped $2,000. It will allow parents to establish accounts to cover the lifetime expenses of a child with disabilities.
Modeled after college savings plans, the ABLE accounts will earn tax-free interest and can be used for education, health care, transportation, housing and other expenses.
People who have a condition that occurred before age 26 may open one ABLE account. Under current gift-tax limitations, as much as $14,000 could be deposited annually.
The new federal rules allow—but do not mandate—ABLE accounts, and each state must establish regulations so that financial institutions can make them available.
0 Comments
Submit a Comment
Submit A Comment
Name
Comment Title
Comment


This feature is available to Subscribers Only
Sign In or Create an Account ×
FROM THIS ISSUE
February 2015
Volume 20, Issue 2