As we reported last week, a bill that would allow people with disabilities to save money and open tax-free savings accounts is currently awaiting approval in the Senate.
The bill, called the ABLE Act, or Achieving a Better Life Experience Act, would allow people with disabilities to setup accounts similar to 529 college savings accounts, allowing them to save for housing, transportation and other expenses.
USA Today had an excellent write up about the bill recently, saying that under current laws, to qualify for Medicaid and Social Security Disability Insurance (SSDI) benefits, people cannot have more than $2,000 in assets and cannot earn more than about $680 per month.
ABLE would allow would allow people with disabilities to establish savings accounts for daily and long-term expenses and contribute up to $14,000 annually, with tax free interest. The accounts could accrue up to $100,000 without affecting someone’s ability to obtain SSDI benefits.
To be eligible to open an account, a person’s disability must have occurred before he or she turned 26.
The House already passed ABLE by an overwhelming majority, 404-17, and it is awaiting Senate approval. It appears as though it will likely get support and could be approved immediately.
Sara Weir, interim president of the National Down Syndrome Society, told USA Today that it would have a tremendous impact on those with disabilities.
Qualifying for Social Security Disability
We are very excited about this bill. It is possible that by the time you are reading this, it will have gained its approval. If you have an interest in qualifying for disability benefits, you should speak to our attorneys.
To qualify for benefits you need to have earned work credits, meaning it is not an entitlement program. For further information on qualifications, we suggest you visit our FAQ page.
Troutman & Troutman, P.C. – Tulsa Social Security disability attorneys