October 3 – The ABLE ACT, Achieving a Better Life Experience
How Does an ABLE account impact benefits?
The President signed the ABLE Act into law in December, 2014, in order to allow “qualified individuals with disabilities” the opportunity to establish a tax-free, savings account to pay for disability related expenses.
A “qualified individual with a disability” is a person whose onset of disability occurred before the age of 26. The individual need not receive benefits based on disability but must establish that the disability began before age 26. The individual with a disability or someone else, such as a family member, can establish an account. If someone other than the beneficiary contributes to the account, the tax-free contribution is limited to $14,000 annually. The beneficiary can also contribute to their own account. As the creation of the ABLE account was to offset some disability related costs of living, the ABLE account can be used for a broad variety of reasons related to disability: transportation, home modification, education, medical & dental care, wellness, respite care, personal assistance and financial management services.
The ABLE account will NOT impact eligibility for means-tested, federally-funded benefits such as Medicaid and SNAP, but there are two exceptions for SSI:
- The balance in the account above $100,000 is a countable resource.
- The amount withdrawn from the ABLE account for a housing related expense that is retained into the following month will become a countable resource.
When can we take advantage of it?
In the state of South Carolina the ABLE Account Program is called the Palmetto ABLE Account. Any SC resident who is an eligible individual can open an account. An “Eligible Individual” is someone who developed their disability before the age of 26. The individual must have been living with their disability for at least one year, or they must expect their disability to last for at least a year. For more information please visit https://palmettoable.com/
Would you like to find out more about WIPA and your benefits? Contact your statewide WIPA Program-Project 20/20 if you have questions like our Daily Tips or want to learn more about working while receiving social security disability benefits. Call our North Augusta office at 803-279-9611 or the Ticket to Work Helpline at 1-866-968-7842. You can also complete a Contact Us or Self-referral Form.