ABLE Accounts Support Planning for Financial Needs
Many people with a disability work hard to make sure they do not go over the $2,000 SSI limit for fear of losing or getting a reduction in benefits such as SNAP.
As people get close to that limit it creates the need to reduce their resources, often referred to as a spend-down. This often results in purchasing items that are not really necessarily needed.
The ABLE Act was created to support millions of people with disabilities and their families who depend on a wide variety of public benefits for income, health care and food and housing assistance.
Eligibility for these public benefits (SSI, SNAP, Medicaid) require meeting requirements that restricts eligibility to people who report less than $2,000 in cash savings, retirement funds and other items of significant value. 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, 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 largely not affect their eligibility for SSI, Medicaid and means-tested programs such as FAFSA, HUD and SNAP/food stamp benefits.
Currently for people who utilize an ABLE account the maximum annual contribution is $15,000. The first $100,000 in ABLE accounts would be exempted from the SSI $2,000 individual resource limit. When an ABLE account exceeds $100,000, the beneficiary’s SSI cash benefit would be suspended until such time as the account falls back below $100,000.
Money from an able account can be utilized for a “qualified disability expense”, meaning any expense related to the designated beneficiary as a result of living a life with disabilities. These may include education, housing, transportation, employment training and support, assistive technology, personal support services, health care expenses, financial management and administrative services and other expenses which help improve health, independence, and/or quality of life.
As a parent of a disabled child, I was concerned regarding my son’s future. The New York ABLE account allows me to save funds for my son for qualified disability expenses without the fear of losing his benefits from SSI and Medicaid. The account was very easy to set up online and automatic monthly payments is one less thing I need to worry about. His future is a little more secure with the help of the ABLE account.” Christine Perkinson, Member and Family Advisory Council Member.
Only you can decide if the ABLE account is something that works for you.
Click NYABLE to find out more.
Information provided in this article came from NYABLE and The National Resource Center