If you’re a parent or a guardian of a child with a disability, you know the added costs of raising a child in this situation. The Achieving a Better Life Experience (ABLE) Act lets you create a tax-free savings account for your child without jeopardizing other public assistance.
Until this act, you couldn’t save more than $ 2,000 a year without risking eligibility for other public assistance programs. These accounts run like a 529 plan that lets friends and family contribute up to $ 14,000 per year to the account. Like the 529 plans, states regulate the specifics of ABLE accounts.
You’ll need to check with your state disability services for the details on how to set up an account. Check out the link for the details.
Photo by 401(K) 2012.