One of the main benefits of ABLE accounts is their tax advantages. Any interest or earnings on the accounts are not subject to federal or state income taxes as long as the funds are used for qualified disability expenses.
Assets held in an ABLE account are protected from being counted as a resource for means-tested government benefits, such as Medicaid and Supplemental Security Income (SSI). This means that individuals can save money without fear of losing eligibility for these important
ABLE accounts offer individuals with disabilities and their families flexibility in how the money is
used. The funds can be used to cover a wide range of qualified disability expenses, including
education, housing, transportation, healthcare, and assistive technology.
ABLE accounts are easy to set up and manage. They can be opened online, and there is no age limit for beneficiaries. The account holder also has control over how the funds are invested and can make withdrawals at any time.
Ability to Save without Affecting Other Benefits
Perhaps the most significant benefit of ABLE accounts is that individuals can save money without affecting their eligibility for important benefits such as SSI. This allows individuals to plan for their future and have a financial safety net, while still receiving necessary support from government programs.