Do you or anyone you know have someone in your family with special needs? And with those needs, have costs for care and services you struggle to pay for? Unfortunately, this is a fact of life that affects millions of Americans. That is why the Achieving a Better Life Experience Act of 2013 was enacted. The act enables individuals with special needs or other individuals, family or not, to establish a tax advantaged savings account that can be used to pay for qualified disability expenses, tax free. Funds can be invested according to state investment guidelines. You may have noticed this type of account holds a couple of similarities to a section 529 education plan. While the contributions are not tax deductible, the account grows tax deferred and can be used tax free if used for qualified disability expenses.
There are a few drawbacks, to be eligible an individual must have a significant disability that began prior to age 26. The individual can be older than 26 but the onset must be before 26. They are also subject to contribution limitations that are varied by state.
You may be asking, does this affect a person’s eligibility for government assistance like Medicaid? NO, and that is another beautiful aspect of ABLE Accounts. However, accounts over $100,000 may affect a persons SSI Benefits.
Some expenses that qualify include education, housing, employment training, support, technology meant to better individuals standard of living, healthcare expenses & Administration services.
This is just a quick introduction into ABLE Accounts, for more information please do not hesitate to reach out.
Personal Freedom through Financial Success
Bill Drexler has been in the Financial Industry for over 5 years. Bill holds the philosophy that proper financial education and partnership toward financial success can alleviate many stresses and uncertainty, allowing us to focus on family, career and friends. He has taken a personalized approach to forming multigenerational relationships with his clients.
Bill's focus and passion are two fold: 1) Helping young families get off to a a great start by ensuring they have the proper knowledge and tools to protect their family in the short term, and ensure continued success throughout their careers and into retirement; 2) Specializing in serving people who are newly retired or nearing retirement, navigating the decisions regarding 401k rollovers, Social Security, Medicare, etc., and developing strategies to make assets and income last for perhaps 20, 30 or even 40 years.
When he's not working, Bill enjoys spending time with his dog Max and other family, going to the beach and playing guitar, along with volunteering in the Local Brevard County community.