Special needs ABLE accounts
If you or a loved one have special needs, an ABLE account offers a great way to save for future disability-related expenses.
ABLE stands for Achieving a Better Life Experience. The ABLE account offers disabled individuals a savings account that is tax-exempt. Money in the account can be used for disability-related expenses, without affecting your eligibility for other benefits.
How It Works:
An eligible person or their legal representative opens an ABLE savings account by completing a form online or mailing a paper enrollment form to the address noted on the form. The initial deposit is $50 unless the owner chooses to use Automated Investment Plan or payroll deduction.
Contributions can be made by:
- Any person or entity may contribute to the account. Others can contribute up to gift tax exclusion limit ($14,000) “per calendar year per account owner.”
- Payroll deductions
- Automated Investment Plan (“AIP”)
- Note that subsequent contributions must be at least $25 unless AIP or payroll deduction. Also, annual maximum contribution is $14,000.
The disabled person or their legal representative is the owner of the ABLE account. Money deposited to the account is tax-exempt, as well as the money withdrawn for eligible expenses. Even the interest earned on the account is tax exempt.
ABLE account owners must be:
- A child, transition-aged youth, or adult with an eligible disability.
- Disabled at the time the account is opened.
- Disabled prior to individual’s 26th birthday.
- Diagnosed with other qualifying conditions as listed at Social Security Administration
- Compassionate Allowances Conditions.
Find Out More About ABLE Accounts.
As with any program, restrictions and limitations apply. If you are interested in setting up an ABLE account for yourself or a loved one, please call us at 256-237-3339 or use our Contact Form to let us know you’re ready to talk.