Effective January 1, 2018, the Internal Revenue Service raises the total amount that may be contributed to an ABLE account to $15,000 (was $14,000).
The ABLE account (“Achieving a Better Life Experience”) allows an individual with disabilities to save in a tax-advantaged account and use the savings for qualified disability-related expenses. Up to $100,000 in an ABLE account is NOT considered to be a countable resource, thereby allowing the beneficiary to retain eligibility for Medicaid and other means-tested programs. The disabled person is both owner and beneficiary. The beneficiary and others may contribute to the account. However, the beneficiary may have only one ABLE account.
Because of certain limitations, an ABLE account should be considered an adjunct to, not a substitute for, a Special Needs Trust.
- Unlike the ABLE account, a Special Needs Trust can hold any amount of money and there is no dollar limit on annual contributions.
- The ABLE account is available only to those who have developed a disability by age 26.
- Upon the death of the owner/beneficiary, the State of Florida has the right to collect from the ABLE account any monies expended on the individual.
In Florida, ABLE accounts are administered by ABLE United. Several different types of investments are offered through the program. Find out more about Florida ABLE accounts here.