In December 2014, the Achieving a Better Life Experience (ABLE) Act was signed into law authorizing individuals with disabilities to open tax-exempt savings accounts to save for disability-related expenses without impacting eligibility for resource-based benefits. The Act permits individuals with disabilities to save more than a total of $2,000 in assets (cash, savings, etc.) in their name in a qualifed ABLE account.
For more detailed information and to enroll:
Call us: 1-844-ENABLE4
Email us: firstname.lastname@example.org
FAQ: Who is eligible to open an ABLE savings account?
A: Currently, under the Achieving a Better life Experience (ABLE) Act, one criterion used to determine if indivuals are eligible to open an account is if the onset of the disability was before their 26th birthday. (May 2016) Congress is reviewing legislation to increase the age from 26 to 46. The Enable (Nebraska) Savings Plan team supports this age increase.
One of the most frequent comments received on eligibility comes from those whose disability occurred after the age of 26. Research shows the first symptoms of multiple sclerosis occur between the ages of 20 and 40. Others talk about injuries they incurred due to car accidents they were in after the age of 26.
Wounded veterans, one of the important groups which the ABLE Act was created for, tell us veterans sufer physical and mental handicaps that begin well past the age of 26. We understand that 26 years old was chose due to the need to minimize the impact on tax losses due to the tax-advantaged nature of an ABLE account. However, these accounts are meant to benefit and provide long-term financial independence for individuals who have a whole life ahead of them.
The extension of the age limit to 46 for ABLE accounts is both necessary and significant. We urge you to contact your state's congressional representatiaves, asking them to support the age increase for the ABLE Act. ABLE savings plans will serve as vital financial vehicles for indivuals with disabilities. A person's eligibility should not be so severely limited by his or her age.
-Rachel Biar, Assistant State Treasurer, Nebraska State Treasurer's Office
New blog post