What is the ABLE act?

What is the ABLE act?

Stands for Achieving a Better Life Experience Act, was signed into law in December 2014. This new provision authorizes any state to offer its residents the option of setting up an ABLE account. The ABLE account allows people with disabilities, and their families, the ability to save and pay for disability related expenses. 

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    • Who are eligible for the ABLE Act?

      An individual is eligible for an ABLE account if that person is diagnosed with blindness or a disability prior to their 26th birthday.
    • Are distributions taxable on the ABLE Act?

      Distributions are tax-free as long as they are used to pay qualified disability expenses that relate to the designated beneficiary’s blindness or disability and help that person maintain or improve health, independence and quality of life. For ...
    • What is the contribution limit for the ABLE Account?

      The yearly contribution limit is the amount of the annual federal gift tax exclusion, which is currently $14,000.