What to know about an ABLE Savings Account
I used to really stress about how I could financially support my sister who manages a mental illness without compromising the systems that are in place to support her. That is when I came across ABLE accounts. ABLE stands for Achieving a Better Life Experience which was an act signed in 2014. The goal of this act is to allow those with special needs to save money for life expenses while still being eligible for their benefits.
That means the money in these accounts will not count against someone qualifying for SSI or Medicaid for example and is also un-taxed! Thus, you can support your family member financially and help them on their road to independence. There are some qualifications the person must meet but if you fall under the umbrella it is a great tool.
Two qualifications are you must have had the disabling condition before the age of 26 and it must be medically provable. Additionally, the account cannot exceed $100,000 plus you can only have one account. To get started on the process you can visit able-now.com.
Whether you are a loving family member trying to help a sibling or the person who will open the account yourself this is a great first step on building financial independence. If there is any more knowledge that you think should be shared on this topic please leave a comment below so we can all learn together.