People with disabilities recently received a potential financial jolt when Congress pushed forward a number of bills this month that would update the Achieving a Better Life Experience Act, known as the ABLE Act.
In 2014 the ABLE Act became law, allowing people with disabilities to open special accounts where they can save up to $100,000 without affecting their status with Social Security or other government benefits, including Medicaid. Under the current legislation, these people are only allowed to deposit $14,000 per year into these accounts.
A new bill called the ABLE to Work Act would update this amount, doubling the amount one could in these accounts. The ABLE Financial Planning Act has also moved forward, and would allow families to transfer over money saved in a 529 college saving plan for a child with disability to an ABLE savings account.
