In 2014, federal legislation paved the way for states to offer ABLE accounts — tax-advantaged plans that allow individuals with disabilities to save for ongoing expenses without threatening their eligibility for crucial government support.
Anyone with a disability who receives disability-related benefits, such as Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), or who can produce a certification from a doctor that states that their disability is “marked and severe,” can open an ABLE account, with one major caveat: The individual’s disability must have occurred prior to his or her 26th birthday.
Congress is considering legislation that would extend the age of onset from 26 to 46. If enacted, the legislation would likely double the number of people who qualify for an ABLE account, says Mary Morris, CEO of Virginia529, which administers ABLEnow. “It would hit a really large group of working people with disabilities and those who we think benefit most from an ABLE account,” Morris says.
Read more in this article published by Kiplinger in April 2022.