Workers with Disabilities Can Save More in ABLE Accounts Now !
What is ABLE account for disable workers?
People with disabilities who are employed can deposit extra money into their Achieving a Better Life Experience (ABLE )accounts as per the IRS notice. Annual contributions to ABLE accounts are currently capped at $15,000. However, for the Year 2018 , the differently able workers can deposit an additional $12,140 in income. This change in rules to save in ABLE accounts , individuals with disabilities can save more money than ever before without losing out on Social Security, Medicaid and other government benefits.
What is ABLE accounts for disable workers?
Achieving a Better Life Experience (ABLE ) accounts were established under a 2014federal law. Under this scheme,individuals with disabilities prior to age 26 can accrue up to $100,000 without risking eligibility for Social Security and other government benefits. Medicaid can be retained no matter how much money is in the accounts.At present, 39 states offer ABLE programs, many of which are open to people with disabilities nationwide.
That means that workers with disabilities can potentially save $27,140 in an ABLE account in year 2018.The allowable extra savings rises to $13,960 for those living in Hawaii and $15,180 for Alaska residents, IRS notice informs.
Further ,workers with disabilities who have ABLE accounts can now qualify for a Saver’s Credit, which can reduce their federal tax bill. Another nice change is that it is now possible to roll over money from traditional 529 college savings plans into ABLE accounts. This change is designed to help families that set up college savings plans before learning that their child had a disability.