Obama Signs ABLE Act

obamaWith his signature, the president has paved the way for people with disabilities to open tax-free savings accounts where they can amass more than $2,000 without losing government benefits.

President Barack Obama signed the Achieving a Better Life Experience, or ABLE, Act Friday before leaving Washington for the holidays.

The new law will allow people with disabilities to open special accounts where they can save up to $100,000 without risking eligibility for Social Security and other government programs. What’s more, individuals can keep their Medicaid coverage no matter how much money is accrued in an ABLE account.

Modeled after 529 college savings plans, interest earned on savings will be tax-free. Funds accrued in the accounts can be used to pay for education, health care, transportation, housing and other expenses.

Read more at Disability Scoop

(Photo Credit: Olivier Douliery/Abaca Press/TNS)

Author: Kevin Mulligan

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