In December of 2014, the Achieving Better Life Experiences Act (ABLE) became law allowing individuals who became disabled before the age of 26 to open special accounts to be used for their disability expenses. An ABLE account's earnings are not taxed and can hold up to $100,000 dollars without those funds affecting SSI eligibility, Medicaid, or other federal means-tested benefits. Before the introduction of the ABLE act, individuals with disabilities would be penalized if their savings exceeded a certain limit.
Under the ABLE act, each state must set up the framework for an ABLE account also known as a 529A account. Currently, 27 states have passed legislation regarding the ABLE account program. Who is eligible for an ABLE account? Any individual who became disabled before age 26 and who 1) receives Social Security disability insurance or Supplemental Security Income and 2) files a disability certification. The disability expenses covered under an ABLE account include: expenses made for the benefit of a disabled individual for education, housing, transportation, employment training and support, assistive technology, health prevention and wellness, financial management, legal fees, expenses for oversight and monitoring, funeral and burial, etc. If an ABLE account does exceed $100,000, SSI benefits may be suspended but are not terminated.
For more information about Social Security disability benefits and ABLE accounts, contact an experienced Social Security disability attorney at Gardberg & Kemmerly, P.C. today at 251-343-1111 for a free case evaluation. Gardberg & Kemmerly, P.C. represents Social Security disability claimants in Alabama, Mississippi, Florida, and Louisiana at all levels of the disability process from initial application to appeals to Federal Court.