An Achieving a Better Life Experience (ABLE) account is a type of tax-advantaged account for an individual who is blind or disabled by a condition that began before the individual's 26th birthday. ABLE accounts are opened through an ABLE program established by a state. Anyone may make contributions to an ABLE account provided the contribution is made with post-tax money. Income earned in an ABLE account is not subject to Federal income tax. Generally, ABLE accounts that are under $100,000 do not impact the beneficiary's ability to receive public benefits such as supplemental social security income or Medicaid. An ABLE account may be used for qualified disability expenses of the beneficiary, including but not limited to education, housing, transportation, employment training and support, health, and basic living expenses.
Download Tomorrow to assign guardianship for your children – for free.