The Achieving a Better Life Experience—ABLE—savings program allows special-needs individuals to contribute to a savings account without jeopardizing access to government assistance.
Prior to the passage of the ABLE Act in 2014, disabled people having more than $2,000 in cash or investments faced the possibility of losing critical government benefits. Now, however, through the state-sponsored, tax-advantaged savings program, those with special needs and their families can contribute up to $15,000 a year without risking the loss of those benefits.
Once deemed eligible, individuals with disabilities can open an ABLE account and use the funds for any expense that is related to the account owner’s disability. The accounts can provide a way for them to prepare for their own future versus relying solely on government programs.
Up to 8 million people could qualify for an ABLE account; surprisingly, only a fraction of those eligible for these accounts have one.