The Achieving a Better Life Experience (ABLE) Act allows individuals with disabilities to save money without jeopardizing their eligibility for Supplemental Security Income (SSI).
This program provides financial flexibility for SSI recipients, ensuring they can build savings for disability-related expenses without losing critical benefits.
What is an ABLE account?
An ABLE account is a tax-advantaged savings account designed specifically for individuals with disabilities. Individuals can use funds in an ABLE account for qualified disability expenses, including healthcare, education, housing, and transportation. Importantly, SSI recipients can save up to $100,000 in an ABLE account without affecting their benefits. Any savings exceeding this amount may temporarily suspend SSI but will not terminate eligibility.
How does the ABLE Act protect SSI benefits?
Before the ABLE Act, SSI recipients faced strict resource limits, often discouraging savings above $2,000. The ABLE Act changes this by exempting funds in ABLE accounts from counting toward these limits. This means SSI recipients can save for future needs without fear of losing benefits. This protection ensures greater financial security for those managing long-term disabilities.
Who qualifies for an ABLE account?
To open an ABLE account, individuals must have a significant disability that began before the age of 26. In Florida, eligible residents can set up accounts through the Florida ABLE program. Contributions to an ABLE account can come from various sources, including family members, friends, and the account holder.
Building a secure financial future
The ABLE Act empowers SSI recipients to save for their future while preserving access to essential benefits. By utilizing an ABLE account, individuals with disabilities can achieve greater independence and financial stability, ensuring their long-term needs are met without unnecessary hardship.