Enacted December 19, 2014, Public Law 113–295, also known as The Stephen Beck, Jr., Achieving a Better Life Experience Act (ABLE Act), added Section 529A to the federal tax code. More commonly referred to as The ABLE act, this law allows eligible individuals with disabilities and their families to save money for disability related expenses in a tax-exempt account known as an ABLE account.
What are ABLE accounts?
ABLE accounts are tax-advantaged savings accounts intended to encourage and assist individuals with disabilities and their families to save private funds to supplement benefits provided through private insurance, Medicaid, supplemental security income (SSI), employment, and other sources.
Most individuals with disabilities depend on Medicaid to access disability related services needed to maintain health, independence, and quality of life. Establishing an ABLE account allows beneficiaries to save money for disability related expenses while maintaining eligibility for means tested Federal benefit programs. Money saved in an ABLE account will not affect an individual's eligiblity for SSI (up to $100,000) and will allow the beneficiary to maintain eligibility for Medicaid and other public benefits.
Visit NJ ABLE to create an account and begin saving.
Frequently Asked Questions about COVID-19 Stimulus Payments and ABLE Accounts, developed by the NJ Council on Development Disabilities, in collaboration with The Boggs Center, Disability Rights NJ, and the NJ Division of Disability Services.
More information on ABLE accounts can be found on the following pages:
