FINANCIAL PLANNING THE ANNUAL ISSUE
EMPOWERING FINANCIAL PLANNING & INDEPENDENCE THROUGH ABLE ACCOUNTS
HOW THE NATIONAL ABLE PROGRAM TRANSFORMS LIVES
BY ABLE TODAY
ABLE today's mission is to advance financial empowerment for people with disabilities by increasing the awareness of ABLE accounts.
The National ABLE Program continues to be a transformative force for individuals living with disabilities across the United States, which allows individuals to save money while helping them to protect benefits like Medicaid and SSI.
ABLE accounts offer eligible individuals with disabilities, a financial solution and sense of financial freedom to save, invest and spend resources in their accounts for disability-related expenses – all while maintaining important benefits like Medicaid and Supplemental Security Income (SSI). In this article, we will provide additional background on the National ABLE Program: how to use an ABLE account for short-term spending and longterm savings, as well as how to partner with ABLE today to access additional ABLE educational opportunities.
UNDERSTANDING THE NATIONAL ABLE PROGRAM
The Stephen Beck Jr., Achieving a Better Life Experience (ABLE) Act, was a legislative concept that took four U.S. Congresses and almost a decade to enact into federal law. The primary purpose is to enable individuals with disabilities to save and invest funds without jeopardizing their eligibility for critical government benefits, such as, Medicaid and SSI. These tax-advantaged savings accounts are designed to cover expenses that enhance the quality of life for people with disabilities.
HOW TO USE AN ABLE ACCOUNT FOR SHORT TERM SPENDING
Qualified Disability Expenses (QDEs) are the cornerstone of the ABLE program. These expenses include a wide array of costs directly related to the disability of the account holder, such as housing, education, transportation, employment training, assistive technology, personal support services, and health and wellness. The flexibility of QDEs allows account holders to significantly improve their overall well-being.
HOW TO USE AN ABLE ACCOUNT FOR LONG TERM SAVINGS
The National ABLE Program is modelled after the traditional 529 College/University Savings Program. Thus, in addition to saving for QDEs, individuals with disabilities are also able to invest their savings for the long term, in their ABLE account, just like in a 529 account. Earnings on ABLE accounts grow free of federal income taxes, so long as account proceeds are used to purchase Qualified Disability Expenses. Many state ABLE programs also offer a state income tax deduction or credit for contributions to ABLE accounts.
ABLE ACCOUNT HOLDERS : SUCCESS STORIES
To illustrate the profound impact of the National ABLE Program, here are some possible scenarios.
MARIA'S PURSUIT OF EDUCATION
Maria, a young woman with Down syndrome, dreams of pursuing a college education. With her ABLE account, she can save for tuition, textbooks, and other education-related expenses. This enables her to fulfill her academic aspirations while preserving her eligibility for Medicaid, which covers her essential healthcare needs.
JAKE'S QUEST FOR INDEPENDENCE
Jake is a wheelchair-bound professional who wishes to modify his living space to accommodate his mobility needs. Using his ABLE account, he can invest in home modifications like ramps and accessible bathrooms. These expenses directly contribute to his independence and quality of life while ensuring he continues to receive SSI.
SOPHIE'S JOURNEY TO WORK
Sophie has cerebral palsy and is passionate about working in a field she's truly passionate about. Her ABLE account allows her to cover transportation costs, personal support services, and job-related expenses, empowering her to maintain steady employment without risking her government assistance.
DAVID'S PURSUIT OF HEALTH
David, a man with a visual impairment, requires specialized medical equipment and services. His ABLE account enables him to pay for adaptive technology and support services, improving his daily life, while Medicaid continues to cover his essential healthcare needs.
ABLE accounts offer eligible individuals with disabilities, a financial solution and sense of financial independence.•
ABOUT ABLE TODAY
ABLE today is committed to sharing information on ABLE accounts directly to the disability community. ABLE today partners with disability organizations, government agencies, employers and other key stakeholders to share free resources and provide in-person / virtual educational webinars on ABLE. You can learn more ABLE today, please visit abletoday.org. To partner together on hosting an ABLE presentation for your organization or group, please email sara@abletoday.org.