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Saturday, August 20, 2016

ABLE Accounts Provide Special Needs Families With New Savings Tool

How can an ABLE Account help me save for my special needs child?

For parents of special needs children, planning for the future can be stressful.  Recognizing the challenges faced by dedicated parents of special needs children, Congress passed the “Stephen Beck Jr., Achieving a Better Life Experience Act.”  Known as ABLE accounts, the program aims to allow families to save tax-free towards their child’s care.  It is administered by each individual state, and Alabama adopted the program in 2015.  While state laws have passed to welcome the program, Alabama is awaiting final regulations from the United States Treasury to develop the program locally.  The official launch of the Alabama program should be within the next few months.

To be eligible for an ABLE account, individuals must be diagnosed with a qualifying disability before they turn 26.  Families can contribute up to a certain amount each year, currently set at $14,000.  The principal and any gains on the account can be withdrawn tax-free to be used for qualifying expenses.  Examples of qualified disability expenses include housing, transportation, health, education, employment training, and much more.  This tax-free component allows ABLE to offer a huge advantage over special needs trusts, where accumulated income is taxed at rates of up to 39 percent. 

ABLE comes with another key advantage for individuals with disabilities—it allows them to hold significant assets without losing eligibility for government programs.  Many people with special needs are enrolled in Medicaid or receive Supplemental Security Income. Losing these programs could be costly for the entire family.  ABLE accounts allow families to save up to $100,000 and it will not impact the qualifying individual’s eligibility for government programs. 

Alabama families with special needs children are encouraged to explore the option of an ABLE account and speak with an experienced special needs planning attorney.  At Nolan Elder Law and Estate Planning, LLC, we help the parents of special needs children effectively plan for their future so that they have peace of mind.  Contact us to schedule your initial consultation. 

http://www.cnbc.com/2016/07/29/special-needs-families-get-new-100k-savings-tool.html

 

ABLE Accounts Provide Special Needs Families With New Savings Tool

How can an ABLE Account help me save for my special needs child?

For parents of special needs children, planning for the future can be stressful.  Recognizing the challenges faced by dedicated parents of special needs children, Congress passed the “Stephen Beck Jr., Achieving a Better Life Experience Act.”  Known as ABLE accounts, the program aims to allow families to save tax-free towards their child’s care.  It is administered by each individual state, and Alabama adopted the program in 2015.  While state laws have passed to welcome the program, Alabama is awaiting final regulations from the United States Treasury to develop the program locally.  The official launch of the Alabama program should be within the next few months.

To be eligible for an ABLE account, individuals must be diagnosed with a qualifying disability before they turn 26.  Families can contribute up to a certain amount each year, currently set at $14,000.  The principal and any gains on the account can be withdrawn tax-free to be used for qualifying expenses.  Examples of qualified disability expenses include housing, transportation, health, education, employment training, and much more.  This tax-free component allows ABLE to offer a huge advantage over special needs trusts, where accumulated income is taxed at rates of up to 39 percent. 

ABLE comes with another key advantage for individuals with disabilities—it allows them to hold significant assets without losing eligibility for government programs.  Many people with special needs are enrolled in Medicaid or receive Supplemental Security Income. Losing these programs could be costly for the entire family.  ABLE accounts allow families to save up to $100,000 and it will not impact the qualifying individual’s eligibility for government programs. 

Alabama families with special needs children are encouraged to explore the option of an ABLE account and speak with an experienced special needs planning attorney.  At Nolan Elder Law and Estate Planning, LLC, we help the parents of special needs children effectively plan for their future so that they have peace of mind.  Contact us to schedule your initial consultation. 

http://www.cnbc.com/2016/07/29/special-needs-families-get-new-100k-savings-tool.html

 


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