ABLE Act Becomes Law
In December 2014, President Barack Obama signed the Achieving a Better Life Experience (ABLE) Act into law marking a significant achievement in disability rights. The ABLE Act allows people with disabilities to open savings accounts, similar to 529 college savings plans, where they are able to save up to $100,000 without risking eligibility for Social Security and other government programs. Additionally, individuals can also keep their Medicaid coverage regardless of how much money is accrued in an ABLE account.
Although people with disabilities may be able to start opening ABLE accounts as soon as 2015, each state must put regulations in place to make this offer available. GCDD will continue to provide updates on the ABLE Act and how it is being implemented in Georgia.
ABLE Account Planning: Six Next Steps in 2015
So how can you plan ahead for you, your child or other family member when ABLE accounts become available later in 2015?
Here’s how in six steps:
1. Identify your need for savings.
2. Identify potential sources for income.
3. Consider an ABLE account as part of long-term financial goals.
4. Be aware of some disadvantages to an ABLE account.
5. Make sure Georgia is moving forward to establish an ABLE account program.
6. Start saving now!
For additional information on the ABLE Act and ABLE accounts, please visit the National Disability Institute website: www.realeconomicimpact.org
