An ABLE account is a tax-advantaged savings account that qualified individuals with disabilities will be able to open as a result of the passage of the ABLE Act of 2014 and subsequent enactment of state ABLE laws. Contributions to ABLE accounts are made on an after-tax basis. Earnings from ABLE funds grow tax-deferred and are tax-free if used for qualified disability expenses.
Under ABLE, eligible individuals and families will be allowed to establish ABLE savings accounts that will not affect their eligibility for SSI (up to $100,000), Medicaid and other public benefits.
Following the passage of ABLE at the federal level, many states moved quickly to pass their own ABLE bills authorizing establishment of state ABLE programs. Hopefully, beginning late 2016, disabled individuals residing in New Jersey will be able to open ABLE Act accounts.