Eligible Hoosiers can now open an ABLE (Achieving a Better Life Experience account) courtesy of the State of Ohio. An “eligible” Hoosier is a person who develops a disability before the age of twenty-six (26). The person must have had this disability for at least one year or must expect their disability to last at least a year.
STABLE accounts allow disabled Hoosiers to remain eligible for SSI, Medicaid, and SSDI. Earnings used for “Qualified Disability Accounts” are not subject to federal income tax.
A STABLE account can be set up by a disabled person, a parent, guardian, or power of attorney. The 2016 contribution limit is $14,000. A person can only have one account. A person can have up to $100,000 in a STABLE account and still receive SSI benefits.
Qualified Disability Expenses include:
There is a small cost for the administration of STABLE accounts. You can open an account today for your disabled child with a minimum gift of $50.
Indiana is working on the development of ABLE accounts for eligible Hoosiers. We encourage our clients to consider establishing a STABLE account now, until Indiana ABLE accounts are authorized.
Example: Mary developed a disability at age 25 and began receiving SSI payments. She has been limited to $2,000 in her accounts at the end of each month. She has had to spend money each month to remain eligible for SSI benefits. She can now put her excess funds into a STABLE account to save for a rainy day.
Hate the Buckeyes? You can create an ABLE account for an eligible Hoosier in Tennessee (ABLE TN) or Nebraska (ENABLE). You can obtain additional information about ABLE accounts at the ABLE National Resource Center (www.ablenrc.org).
Keith P. Huffman