Save for your needs and protect what you have.
What is an ABLE Account?
An ABLE accounts is a special type of savings account, specifically created to meet the needs of people with intellectual or developmental disabilities (with disability onset prior to age 26). Recognizing that they often depend on a wide variety of public assistance programs (Medicaid, SSI, etc.) that have eligibility limitations based on income and/or savings, ABLE accounts were created to allow individuals with I/DD to save for the future, while still remaining eligible for these public benefits.
In addition, ABLE accounts offer certain tax advantages (summarized below).
How does an ABLE account work?
An ABLE account allows an individual with I/DD to accumulate savings on a tax-deferred basis, and these savings to be withdrawn tax-free for qualified expenses, which are any expenses related to his/her disability.
Contributions to an ABLE account can be made by anyone – the account owner (the individual with I/DD), as well as his/her family and friends. These contributions can be made in a variety of ways. An account can be opened for as little as $25 – or just $15 when investing through a payroll deduction plan.
Most states, including New York have established ABLE programs. New York State residents who meet the qualifications can open an ABLE account through the NY ABLE program.
What are the benefits of an ABLE Account?
- Enjoy tax advantages. The money earned on investments in an ABLE account are federally tax-deferred and tax-free if used for qualified disability expenses.
- Save without jeopardizing eligibility for benefit programs. An eligible person can save for future needs while not risking the loss of funds they depend upon from public assistance programs.
- Choose from a range of investment options. Contributions to an ABLE account can be invested in a number of different ways – from aggressive options seeking higher returns to conservative options designed to protect assets.
- Enjoy easy access to savings. The funds in an ABLE account can be accessed in a variety of ways – online, over the phone, through the mail or with a special ABLE account debit card.
How do you set up an ABLE Account?
Setting up an ABLE account is relatively easy to do. to set one up thought New York State’s ABLE program, just click this link: https://www.mynyable.org/home.html