The Achieving Better Life Experience Act (ABLE), was signed into law on December 19, 2014. Once a state has passed legislation implementing an ABLE account program and the Treasury Department issues regulations, persons with disabilities may own and control one tax-exempt savings account for the payment of qualified disability-related expenses. ABLE account funds generally will not count toward income and resource limits for federal means-tested public benefits, such as Supplemental Security Income (SSI) and Medicaid. Although an ABLE account is not a substitute for a special needs trust, this new option will provide a measure of economic independence for individuals with disabilities.
For more details on ABLE, please see our article, “A New Tool to En“ABLE” Independence for Persons with Disabilities,” in the upcoming March issue of the New Hampshire Bar News: https://www.nhbar.org/publications/display-news-issue.asp?id=7809 as well as this Exceptional Parenting Magazine article, written by colleagues from the Special Needs Alliance: http://www.eparent.com/features-3/able-act-passes/.