The Achieving a Better Life Experience (ABLE) Act recently won Congressional approval in the Senate. The ABLE Act lets people with disabilities and their families set up special savings accounts for disability-related expenses without facing loss of their federal benefits when savings exceed certain limits.
Disability-related expenses include education, housing, transportation, employment training/support, assistive technology and personal support services, health prevention and wellness, financial management, legal fees, expenses for oversight and monitoring, and funeral and burial expenses.
President Obama signed the Act into law, but the states will need to implement the Act. Persons who become disabled before age 26 are eligible for an ABLE account.
This is a victory for disabled families who need tax-free savings for disability expenses.