Updating a series of blog posts we brought you earlier this year, the Internal Revenue Service has unveiled proposed guidelines for the Achieving a Better Life Experience or ABLE Act.
According to DisabilityScoop, the proposal outlines how the new savings accounts will function when it comes to tax purposes and what types of expenses the money can be used for. ABLE was signed into law earlier this year, allowing for tax-free savings accounts for people with disabilities.
The news source reported that many disability advocates are happy with how the IRS is allowing the accounts to function, saying many believe the agency took a “lenient view”. To review the IRS guidelines, you can click here.
The IRS is allowing for money in ABLE accounts to be used for specific purposes, including on transportation, housing and education. “The Treasury Department and the IRS conclude that the term ‘qualified disability expenses’ should be broadly construed to permit the inclusion of basic living expenses and should not be limited to expenses for items for which there is a medical necessity or which provide no benefits to others in addition to the benefit to the eligible individual,” the proposal notes.
Advocates said that expenses could qualify if they offer a “quality of life benefit.” One expert told DisabilityScoop that items like electronics for education could potentially be claimed as expenses.
Although some advocates were pleased with the guidelines, some in financial positions raised questions about oversight requirements, saying that there may be unnecessary paperwork filed to justify spending. It should be noted that the guidelines are currently up for public comment before the IRS will issue its final decision about regulations.
Our Social Security Disability Attorneys Can Assist You
It is good to see that the IRS is working towards finalizing the oversight of ABLE accounts. ABLE was big news when it was announced, as many people who receive Social Security Disability Insurance or Supplemental Security Income (SSI) benefits will be able to better save money.
We will keep you posted on any additional news we hear about ABLE. If you need assistance with a Social Security application or appeal, contact our Tulsa SSDI attorneys today.
Troutman & Troutman, P.C. – Tulsa Social Security Disability attorneys