ABLE Achieving a Better Life Experience
The Arc of El Paso wants to see more people with ABLE Accounts. To help with this, we are proud to have received funding from the Pulte Family Charitable Foundation to provide training to our families. On this page you can contact us to get help with an ABLE Account, read a short Q&A about ABLE Accounts, watch videos on ABLE accounts. You can even download a manual and a worksheet to maintain documentation on use of funds.
What is an ABLE Account?
An ABLE account is a tax-advantaged savings account designed to help individuals with disabilities and their families save for qualified disability expenses. Established under the Achieving a Better Life Experience Act (ABLE Act), these accounts provide a new way to save while maintaining eligibility for certain public benefits programs, such as Medicaid and Supplemental Security Income (SSI).
Key Benefits:
Tax Advantages: Contributions grow tax-free, and withdrawals are tax-free when used for qualified disability expenses.
Financial Flexibility: Funds can be used for a wide range of disability-related expenses, including education, housing, transportation, healthcare, assistive technology, and more.
Mostly No Impact on Benefits: ABLE accounts do not affect eligibility for most federal means-tested benefits. SSI Payments are suspended when an ABLE Account balance exceeds $100,000. Medicaid benefits are not impacted by ABLE Accounts.
Why Choose an ABLE Account?
Most states offer its residents the opportunity to open an ABLE account through the program. Several states also allow out-of-state residents to open an ABLE account. Typical features of ABLE Account programs include:
Accessibility: Easy online enrollment and management.
Investment Options: Choose from a variety of investment options to fit your financial goals and risk tolerance.
Community Support: Resources and guidance to help you make the most of your account.
Who is Eligible?
Individuals who developed a disability before the age of 26 are eligible to open an ABLE account. This includes individuals receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) based on disability, and people with a signed physician statement.
How to Get Started:
Visit the ABLE Program website of your desired state to learn more and open your account.
Choose your investment strategy based on your financial goals.
Start saving for disability-related expenses with the peace of mind that comes with ABLE account benefits.
Become Familiar with annual contribution limits ($18,000 in 2024)
Disclaimer: ABLE accounts have rules regarding contribution limits, qualified expenses, and other aspects. Consult a financial advisor or tax professional for personalized advice.
ABLE Accounts must be used to pay for qualified disability expenses.
When funds are spent on qualified disability expenses there are no taxes or penalties. A qualified disability expense is any expense related to the account owner’s blindness or disability that assists them in increasing and/ or maintaining their health, independence and/or quality of life. Some of the more common types of qualified disability expenses are listed below, and there are others.
1. Education: Tuition, books, supplies, and educational materials and services.
2. Housing: Expenses for a primary residence, including rent, mortgage payments, property taxes, utilities, and home improvements related to accessibility and independence.
3. Basic Living Expenses: Food, clothing, household supplies and furnishings.
4. Transportation: Costs related to transportation, including commuting, moving, and specialized transportation services.
5. Health, Prevention, and Wellness: Expenses for prevention, diagnosis, and treatment of physical or mental health conditions, including insurance premiums, copayments, deductibles, and medical equipment and supplies.
6. Assistive Technology: Devices, equipment, and technology that help improve the beneficiary’s functional abilities, including communication devices, mobility aids, and adaptive equipment.
7. Personal Support Services: Expenses for support services that assist the beneficiary in daily living activities, such as personal assistance services, counseling, and training related to the disability.
8. Miscellaneous Expenses: Other expenses related to the account owner’s blindness or disability that assists them in increasing and/or maintaining their health, independence and/ or quality of life.
By using ABLE account funds for qualified disability expenses, individuals can effectively manage their financial resources while maintaining eligibility for important means-tested benefits such as Medicaid and Supplemental Security Income (SSI). Always consult with a financial advisor or tax professional for guidance tailored to your specific circumstances.
Download the ABLE Account Binder!
Download the Expenditure Documentation Form!