Some people who receive Supplemental Security Income can have investment savings accounts
Individuals who have been deemed to have a qualifying disability under Social Security or certified to be blind within the meeting of Section 1614(a)(2) of the Social Security Act, before they have turn 26 years old, may qualify for a special ABLE United Savings Account. This account allows disabled individuals to save money for certain qualifying expenses without jeopardizing their Social Security Disability benefits. Disabled individuals who are eligible for SSI, (Supplemental Security Income) benefits, have restrictions on how much income and resources they are allowed to have. The ABLE account funds allow individuals to save or receive funds toward certain expenses without incurring penalties from Social Security. Family and friends may contribute to the ABLE account, up to a total of $14,000 per year. The account can have up to $100,000 without being considered a countable resource.
Save tax-free for future expenses.
Save while maintaining federal benefits.
Save with the help of family and friends.
Funds placed in an ABLE account may be withdrawn tax-free if the funds are used for specific uses such as health, education, housing, transportation, legal fees, financial management, employment training and support, assistive technology and personal support services, oversight and monitoring, funeral and burial, and some other types of expenses approved by US Treasury regulations. Documentation of expenses paid using ABLE account funds should be retained, but submission is not an automatic requirement. If funds are withdrawn and are used for non-qualified expenses beyond the month of withdrawal they will be considered a resource. There may also be tax implications.
Deposits to, and withdrawals from the ABLE account are easy and convenient. Expenses can be paid by paper check directly from the ABLE account to a third party upon request. Paper checks are free for the first two, and $5.00 per check thereafter. The ABLE account is handled as an investment, and there are multiple investment options available to meet the needs of the account holders. ABLE United has a website filled with information about the plans, a quick start guide, gift certificates that make it easy for family and friends to contribute, reports and videos to help educate.
Currently, fees are waived for Florida residents. Click here to go to the ABLE United website.
Stolberg & Townsend, PA is a full service Tampa law firm, dedicated to representing injured and disabled individuals. The firm practices in all areas of injury and disability law including auto accidents, personal injury, medical malpractice, wrongful death, social security disability, workers’ compensation and state disability retirement. The firm is Peer Rated AV Preeminent, 5 out of 5 in the Martindale-Hubbell legal directory, the highest rating available.