ABLE stands for Achieving a Better Life Experience and the ABLE Act was
signed into federal law at the end of 2014. The ABLE Act creates tax-advantaged
ABLE Accounts which are financial accounts for certain disabled individuals to
use on disability-related expenses. Family members, friends, the disabled
individual, or anyone else may make contributions to the disabled person’s ABLE
Account. The ABLE Act recognizes that people with disabilities have extra costs
that public benefit programs such as SSI, SNAP, or Medicaid cannot always meet.
The significance of these accounts is that the funds in the account generally
are not considered for SSI, Medicaid, and certain other federal means-tested
benefits and the funds help the disabled person finance a more independent
life. Virginia has enacted the ABLE bill which authorizes the Virginia College
Savings Plan (Virginia529) to create and implement these types of accounts.
Virginia529 is currently working to get the program ready. To learn more
information about the features of these accounts and to check for any updates
on Virginia ABLE Accounts, head to Virginia529.com.
Written by Heather W. Winter, Esquire
