An ABLE account is designed to help people with disabilities build up their savings. People with disabilities and their families can save up to $14,000 without it affecting their government benefits. These accounts are operated by individual states. So far, sixteen states offer the plans and about 10 more are expected to do so this year. The idea for ABLE accounts came about a decade ago from parents of kids with disabilities, who were frustrated that they could not easily save money for their children. For the first time, a lot of individuals will be able to work and save money. As a result, when a person with a disability dies, Medicaid can claim any leftover money as payback for health care paid after the ABLE account was opened.
People say the accounts are needed since people with disabilities are forced to spend any money that comes in to avoid losing benefits. With these accounts, money saved can be used in the future to buy anything that helps the life of the person with a disability. These expenses include rent payments, school tuition, or even groceries. These accounts allow individuals with disabilities to set aside money that will help them become more independent, perhaps even help them detach themselves from government benefits. People with disabilities are able and should be able to live their lives however they see fit; the help of an ABLE account will allow them to do just that.
By, Alex Cano