This is exciting news. The House passed the ABLE Act 404-17. If passed by the Senate as expected, the ABLE Act will allow people with disabilities to have more than $2,000 in a savings account called an “ABLE Account”. Current regulations require that a person with a disability have no more than $2,000 in savings to be eligible for Medicare and Social Security. Not only will an individual be able to have a savings account with a balance over $2,000 and still be eligible for Medicaid and Social Security, there will also be no tax on earnings from the account.
The ABLE Act will allow people with disabilities to build up a financial cushion without jeopardizing their eligibility for other services. This will open up more Asset Building opportunities to people with disabilities and considering that people with disabilities are more than twice as likely to live in poverty as a person without disabilities, this will be a huge step forward.
Click here to read more about the Bill passing in the house or click here to read the bill summary.