Laserfiche WebLink
i <br />al T 21`1`111­,� 1, All I i <br />�MIMMW I I ff, W., � 7 1 � 10 <br />1. What is an ABLE account? <br />ABLE Accounts, which are tax -advantaged savings accounts for <br />individuals with disabilities and their families, were created as a result <br />of the passage of the Stephen Beck Jr., Achieving a Better Life <br />Experience Act of 2014 or better known as the ABLE Act. The <br />beneficiary of the account is the account owner, and income earned by <br />the accounts will not be taxed. Contributions to the account, which can <br />be made by any person (the account beneficiary, family and friends), <br />must be made using post -taxed dollars and will not be tax deductible <br />for purposes of federal taxes, however some states may allow for state <br />income t�py deductions for contribution made to an ABLE account. <br />F. Why the need for ABLE accounts? <br />Millions of individuals with disabilities and their families depend on a <br />wiI^ variety of public benefits for income, health care and food and <br />housing assistance. Eligibility for these public benefits (SSI, SNAP, <br />Medicaid) require meeting a means or resource test that limits <br />eligibility to individuals to report more than $2,000 in cash savings, <br />retirement funds and other items of significant value. To remain <br />eligible for these public benefits, an individual must remain poor, For <br />the first time in public policy, the ABLE Act recognizes the extra and <br />significant costs of living with a disability. These include costs, related <br />to raising a child with significant disabilities or a working age adult witl� <br />disabilities, for accessible housing and transportation, personal <br />assistance services, assistive technology and health care not covered <br />by insurance, Medicaid or Medicare. <br />For the first time, eligible individuals and their families will be allowed <br />to establish ABLE savings accounts that will largely not affect their <br />eligibility for SSI, Medicaid and other public benefits. The legislation <br />explains further that an ABLE account will, with private savings, "secure <br />funding for disability -related expenses on behalf of designated <br />beneficiaries with disabilities that will supplement, but not supplant, <br />