They’re Here…Florida ABLE Accounts

The Achieving Better Life Experience Act, or ABLE Act, was signed into law by President Obama in December 2014.  ABLE updates the Internal Revenue Code to allow eligible individuals and their families to establish a tax-exempt savings account that allows for disbursements of income tax-free funds for “qualified disability expenses,” including education, transportation, housing, obtaining and maintaining employment, personal support services, assistive technology and health and wellness.  Money contributed to an ABLE account is generally disregarded, or not countable, when determining eligibility for federal benefit programs, such as Supplemental Security Income (SSI) and Medicaid.

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Should Your Child With Special Needs Have a College Savings Account?

saving-for-college1This is a common question for parents of kids with special needs, particularly when the individual is very high functioning and has aspirations to attend college.  In some cases, a family member may have established a college plan for the child without understanding the possible effect the account can have on the child’s eligibility for government benefits, including Supplemental Security Income (SSI).  College savings accounts are governed under Section 529 of the Internal Revenue Code so they are often referred to as 529 Plans or Qualified Tuition Programs (QTP).

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