insurance

The Basics of ABLE Accounts for Disabled Savers

What you need to know about setting up a savings account through the Achieving a Better Life Experience Act.

One of the biggest breakthroughs in special-needs planning is the introduction of ABLE accounts. A 2014 federal law lets states create these accounts, which are just starting to become available.

People of any age who developed a qualifying disability before age 26 can open an ABLE account. Anyone can add to the account, but total contributions can’t exceed $14,000 per year. (The beneficiary can have only one ABLE account at a time but can switch plans.) The money may be used tax-free for most expenses to benefit the person with the disability, and account assets up to $100,000 don’t count toward the $2,000 limit for Supplemental Security Income benefits.

Like 529 college-savings plans, ABLE accounts are administered by the states, and most will be open to residents of any state (Florida's plan is limited to its own residents). Some states may offer an income-tax deduction for contributions. You usually have several investing options; Florida, Nebraska, Ohio and Tennessee all offer Vanguard funds and a savings account. See the ABLE National Resource Center for details.

Most Popular

Child Tax Credit 2021: Who Gets $3,600? Will I Get Monthly Payments? And Other FAQs
Coronavirus and Your Money

Child Tax Credit 2021: Who Gets $3,600? Will I Get Monthly Payments? And Other FAQs

People have lots of questions about the new $3,000 or $3,600 child tax credit and the advance payments that the IRS will send to most families in 2021…
May 4, 2021
Are You Still Chasing the Almighty Dollar, Even Though You Have Plenty to Retire?
retirement

Are You Still Chasing the Almighty Dollar, Even Though You Have Plenty to Retire?

In our experience, many have saved enough money to retire comfortably. Yet too many worry about their money running out and want more. Maybe it’s tim…
May 6, 2021
9 Tax Deadlines for May 17 (It's Not Just the Due Date for Your Tax Return)
tax deadline

9 Tax Deadlines for May 17 (It's Not Just the Due Date for Your Tax Return)

Between due dates for extension requests, IRA or HSA contributions, and other deadlines, there's more to do by May 17 than just filing your federal in…
May 4, 2021

Recommended

Umbrella Insurance – Do I Need It?
insurance

Umbrella Insurance – Do I Need It?

You might think your home and auto insurance offer more than enough coverage, but if you’re wrong, one very bad day could wipe out your wealth. That’s…
May 5, 2021
Estate-Planning Your Stuff with T. Eric Reich
Empty Nesters

Estate-Planning Your Stuff with T. Eric Reich

What to do with the house, the vacation house and the china? We talk with a financial adviser who's got some wise counsel. Also, who makes up the so-c…
May 2, 2021
Stimulus Plan Has Health Insurance Benefits, Too
Coronavirus and Your Money

Stimulus Plan Has Health Insurance Benefits, Too

The plan’s health care provisions could deliver big savings for early retirees and laid-off workers.
April 29, 2021
What You Need to Know about College 529 Savings Plans
529 Plans

What You Need to Know about College 529 Savings Plans

Do you know how much you’re able to contribute or what the funds could be used to pay for? How about how contributing affects your taxes? Check out th…
April 14, 2021