11/17/15 On December 19, President Obama signed the Achieving a Better Life Experience (ABLE) Act, which allows the creation of tax-favored savings accounts for people with disabilities without jeopardizing their eligibility for Medicaid or Supplemental Security Income (SSI). The ABLE Act allows people with disabilities and their families to set up a special savings account for disability-related expenses, allowing up to $100,000 in savings. Earnings on an ABLE account would not be taxed, and account funds would generally not be considered for the supplemental security income (SSI) program, Medicaid, and other federal means-tested benefits.
The ABLE Act is built on the foundation of the current 529 Education Savings Plans that help families save for college. Those eligible for an ABLE account are children who meet the SSI program’s disability standard for children, or an adult who meets the SSI program’s disability standard for adults, provided that the adult’s disability occurred before he or she reached age 26.
SB 419 which enables the ABLE Act in Nevada was officially signed into law by Governor Sandoval in 2015. The Nevada State Treasurer’s Office is currently working with the U.S. Treasury to establish regulations for the new savings plan in Nevada. They plan to have the program up and running in October 2016.
- ABLE Act goes LIVE in Nevada!
- ABLE FAQ
- Visit the Nevada State Legislative Website for the 2015 Legislative Session to read the full ABLE Act in Nevada.