At the end of 2014, Congress created an entirely new tax-preferred savings account for folks who are supporting individuals with disabilities. The Achieving a Better Life Experience (ABLE) Act introduces a new type of tax-advantaged savings account. As long as the guidelines are followed, adults disabled before age 26 now have a method of saving to meet future expenses—without risking disqualification from benefits.
The ABLE Act modifies the rules that don’t allow SSI recipients to save more than $2000 (unless they have a special needs trust) so that they can accumulate up to $100,000 in so-called “ABLE accounts” without becoming disqualified from receiving Social Security benefits.
In order to qualify as an ABLE account beneficiary, the individual must have been diagnosed with a disability that causes severe limitations before that individual reaches age 26.
For more information: Think Advisor