Families with disabled loved ones have had to walk a very fine line for many years. There is often a delicate balance between providing their family member with the most comfortable life possible, while also ensuring that extra assets or income don’t jeopardize their loved one’s eligibility to receive essential government benefits like Medicaid and Supplemental Security Income (SSI). For years, the most effective way to achieve this balance was to set up a Special Needs Trust. But, in 2014, the federal Achieving a Better Life Experience (ABLE) Act created Internal Revenue Code Section 529A, which authorizes each State to offer tax-advantaged savings accounts for the disabled. The plan works similarly to Section 529 college savings plans. The ABLE Act allows family members and others to make cash contributions to a qualified beneficiary’s ABLE account. The annual contribution amount is limited to the federal gift tax annual exclusion amount which is…
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