What are ABLE Accounts?
Achieving a Better Life Experience (ABLE) Accounts are tax-advantaged savings accounts for individuals with disabilities and their families. An ABLE account allows anyone to contribute (including the account holder) without the fear of saving too high of an amount and losing essential benefits that allow a person living with a disability to live independently. The ABLE Act of 2014 added Section 529A to the federal tax code. The total limit over time that could be made to an ABLE account is subject to the individual state and their limit for education-related 529 savings accounts. Many states have set this limit at more than $300,000 per plan.
Recorded Webinar on ABLE Accounts
Find out if these accounts are right for you from this IFOPA recorded webinar on ABLE accounts. Chris Rodriguez, Director of Public Policy for the National Disability Institute, and Patrick, an FOP community member who works in IT and recently opened an ABLE account in the state of Pennsylvania, were panelists.
Who is Eligible for an ABLE Account?
ABLE accounts are available to individuals who have had an onset of disability before the age of 26. The individual can be over the age of 26 to be eligible for an ABLE account, but the disability must have occurred before the individual was 26 years of age. If an individual meets these age criteria and is also receiving benefits already under SSI and/or SSDI, he or she is automatically eligible to establish an ABLE account. If the individual is not a recipient of SSI and/or SSDI, but still meets the age of onset disability requirement, he or she could still be eligible to open an ABLE account if he or she meets Social Security’s definition and criteria regarding significant functional limitations and receives a letter of certification from a licensed physician.
How can I Enroll?
Signing up for an ABLE program is typically done online and ABLE programs have call centers available to answer any questions you may have. No matter where you reside, you can open an ABLE account in any state that accepts outside residents into their program. Get information on the status of each state's ABLE program and access state-specific enrollment links.
Further Resources and Information
ABLE - Roadmap to Enrollment
A straightforward roadmap on ABLE accounts, eligibility, enrollment and managing funds in an ABLE account.
National Disability Institute
Provides a wealth of resources on income production, savings, and asset building for people with disabilities.