This is a re-post from my other blog the louisianasocialsecuritydisabilityblog.com, regarding some important new legislation, the ABLE Act:
The ABLE Act is moving through Congress and should get the Presidents approval if the Senate approves the bill. The Act would creates ways for the disabled to save with no tax consequences and without losing benefits.
According to WISTV.COM, the bill is modeled after the tax-free college savings accounts. The ABLE Act bill would change the federal tax code to allow states to establish the savings account program. To qualify for the account, a person would be diagnosed as disabled by age 26, with the disability resulting in “marked and severe functional limitation”. Individuals already receiving Social Security disability benefits would also qualify.
Families could then set up tax-free accounts with banks, depositing up to $14,000 annually to pay for long-term needs such as transportation, health care, and education. The qualified contributions are to be in after-tax dollars, but earnings will grow tax-free. ABLE accounts could grow as large as $100,000 without the disabled individual losing their government benefits such as Social Security (current asset limit is $2,000), and Medicaid.