Here's what you need to know about the latest news about tax free savings accounts.
The plans are somewhat like 529 college plans as they will allow individuals with a disability to save up to $100,000 without jeopardizing their eligibility for the Social Security and Medicaid programs. Currently, parents must ensure that their children have no more than $2,000 in their own name. Anything more than that and the individual with a disability can be deemed ineligible for those programs. Not every state in the Union will offer tax free savings accounts right away, but Nebraska, Ohio, Virginia and Florida are likely to start sometime this summer. The ABLE funds can be used towards education, healthcare, transportation and housing.
Parents can now breathe easier knowing they can put ABLE funds away for their child to access, as needed, throughout their adult lives. www.disabilityscoop.com/2016/05/10/first-able-accounts-expected/22293/