What is an ABLE account? What does ABLE stand for? Let me set the scene for you. ABLE stands for Achieving a Better Life Experience Act which dates back to 2014. This allows states to create tax advantaged programs that are qualified for individuals that are Differently Abled. These accounts can be beneficial, and these are 529 which can rollover to 529A for expenses that are much needed.
In 2017 the amount increases of contributions into an ABLE account with a contribution limit. It also allows beneficiaries to claim savor’s credit for allowance to that account. Lastly, this allows rollovers from a 529 qualified program to the designated beneficiary or family member.
The funds in ABLE accounts can not exceed over the $2,000 limit that remains eligible for government supports. Some of these supports include funding a variety of much required payments for my friends who are Differently abled that have expenditures which can include medical, dental, educational, and housing. This federal act consents to the states to develop their own programs with ABLE accounts and some states have moved quickly to pass ABLE legislation and are in many different stages of expanding out more programs for ABLE accounts.
The Stephen Beck Jr. Achieving a Better Life Experience was signed into law on December 19th 2014. So this year will be their 7 year anniversary so thank you to all ABLE account holders to make this dream come true.
ABLE accounts also have a rollover from a 529 to a 529A which is also called ABLE Financial Planning Act. These accounts up to the maximum contribution, and this allows family members to set up these accounts before receiving their child’s diagnosis or teenagers that incur lifechanging events that makes them unable to attend college and using these accounts for that sole purpose.
I know many self-advocates have their own ABLE accounts and that is terrific news it helps us to put our paychecks somewhere and we can put it in those accounts. We all use our accounts in all different ways. Personally, I use my account for my college tuition as well as dental bills. They are quite extensive. I like using my account because it gives me the freedom and independence to use my account in my own way.