Rules for Spending ABLE Money You can spend the money in your ABLE account on any “qualified disability expense.” This can include:
Housing (which can be mortgage payments, real property taxes, rent, furniture, heating fuel, gas, electricity, water, sewer, or garbage removal) Transportation (including gasoline and car repairs, public transportation, paratransit, and taxis).
Medical expenses, prevention, and wellness (including insurance premiums and copays)
Many people who have disabilities are unfamiliar with the
ABLE Law or what an ABLE Account is and how it can help them. Recently in
Nevada I have been helping educate people with disabilities and also attorneys
and some judges who hear cases on ABLE.
This has really educated me on the importance of an ABLE Account.
What is an ABLE account? An ABLE account is a tax-advantaged savings account where qualified individuals with disabilities can open a spending account as a result of the passage of the ABLE Act of 2014. The person can make a contribution to their ABLE accounts on an after-tax basis. The earnings from ABLE funds are tax-deferred and are tax-free as long as the person uses them for qualified disability expenses.
Why the need for ABLE accounts? In most states people with disabilities can only have $2,000 in assets at any given time in order to remain eligible for many federal programs that many depend on programs like Supplemental Security Income (SSI). Although under ABLE, they are now eligible for an ABLE savings account that will not affect their eligibility for SSI (up to $100,000), Medicaid and other public benefits. Also though the ABLE account it allows an increase this $2,000 asset limitation so that individuals account holder and their families can save money for their present and future needs.