ABLE Account

ABLE Accounts are tax-advantaged savings accounts for individuals with disabilities and their families. They are the result of the passage of the Stephen Beck Jr., Achieving a Better Life Experience Act of 2014, better known as the ABLE Act. The beneficiary of the account is the owner, and income earned by the accounts will not be taxed. Contributions to the account made by any person (the account beneficiary, family, and friends) will be made using post-taxed dollars and will not be tax deductible, although some states may allow for state income tax deductions for contributions made to an ABLE account. The ABLE Act recognizes the extra and significant costs of living with a disability. These include costs related to raising a child with significant disabilities or a working age adult with disabilities, for accessible housing and transportation, personal assistance services, assistive technology and health care not covered by insurance, Medicaid, or Medicare. Eligible individuals and their families will be allowed to establish ABLE savings accounts that will not affect their eligibility for SSI, Medicaid, and other public benefits. An ABLE account will, with private savings, “secure funding for disability-related expenses on behalf of designated beneficiaries with disabilities that will supplement, but not supplant, benefits provided through private insurance, Medicaid, SSI, the beneficiary’s employment, and other sources.”

ABLE Program Implementation for New England States