Massachusetts launched its ABLE program, named The Attainable Savings Plan, to allow people who become disabled prior to age 26 to save money, tax-free, and have more financial freedom than they have had in decades.
An ABLE account allows donors to put up to $14,000 into the account per year, to grow tax-free. Even more important than the tax benefits, the money in the account, up to $100,000, is not counted when determining eligibility for Supplemental Security Income (“SSI”) and MassHealth.
In other words, a person can have up to $100,000 in an Able Account and still be considered to have less than $2,000 in assets, thereby qualifying for SSI and MassHealth.
The funds in the account can be used tax-free for disability-related expenses that assist the beneficiary in increasing or maintaining his or her health, independence or quality of life and if the tax-free benefit is not important, the money can be used for anything.
Money in an ABLE account is not counted for purposes of determining SNAP (food stamp) eligibility.
The ABLE accounts will be managed by Fidelity Investments. To open an account or to learn more, go to Fidelity. The Massachusetts ABLE program has an annual account fee of $30, plus an annual asset-based fee of 0.15%.
For legal assistance in connection with guardianships, conservatorships, child support, and financial disability issues, contact the Law Offices of Renee Lazar at 978-844-4095 to schedule a FREE one hour no obligation consultation.