ABLE Accounts: A New Savings Tool for Individuals with Disabilities

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The Achieving a Better Life Experience (ABLE) Act was signed into law in December as part of the tax extenders bill. The ABLE Act authorized the establishment of private tax-advantaged savings accounts (similar to 529 college savings accounts) to help individuals with disabilities save for long-term expenses without sacrificing their eligibility for public benefits such as SSI and Medicaid.

An individual whose disability began before age 26 may be eligible to open an ABLE account. However, the IRS and the Treasury Department still have to finalize regulations and issue guidance before states can establish programs and begin accepting account applications. This means that ABLE accounts likely won’t become available until the third quarter of 2015 at the earliest. But in the meantime, clients and their families may have questions about this important new savings tool, so we’ve created a Client Alert that provides an overview of ABLE account features.

We’ll continue to pass along timely, relevant information–providing fresh and interesting ways for you to engage and motivate your clients.

 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.
The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

 

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