Read this article if you are unsure if you qualify for disability benefits from Social Security and would like to learn more. A state may establish a tax-advantaged program for qualified individuals with disabilities under the Achieving a Better Life Experience Act of 2014 (ABLE). Beneficiaries of 529A ABLE accounts can use the money for tax-free medical and other costs related to their handicap. Because of the restriction of $2,000 on resources, it might be difficult for people with disabilities to obtain assistance from the Social Security Administration to help better their conditions. Those receiving SSDI, or Social Security Disability Insurance, will have a part of their benefits withheld if their financial assets exceed $2,000.
Moving into a new house, buying a vehicle, furthering one’s education, or even enrolling in programs to assist better one’s disability through crucial exercise programs is tough for those with savings accounts of $2,000 or less.
Talk to a social security disability attorney in phoenix who specialized in your type of case if you have particular questions regarding your rights and possible courses of action.
In order to help persons with impairments overcome obstacles and cut costs, the government is giving a solution.
Benefits can be preserved as individuals save up to $15,000 per year under the Stephen Beck Jr. Achieving a Better Life Experience (ABLE) Act of 2014. The idea behind ABLE was inspired by 529 plans, which allow people to save for higher education. Exceeding the SSI resource limit means the account’s interest will accumulate tax-free.
It’s important to be aware of the following limitations imposed by the ABLE Act:
- A maximum annual deposit of $15,000.
- Social Security benefits will be reduced if the account balance is more than $100,000 affected.
- In most cases, a cumulative lifetime balance of $500,000.
In general, you can’t just buy whatever you want with money from an ABLE account. Account money should be spent on things that help you become more self-reliant or increase your quality of life.
For which alternatives do the following criteria hold true:
- Sustaining good health
- Aid on an individual basis
- Aids to Daily Living
- Assistance with job-search skills and training
Funds deposited into an ABLE account are protected against loss by the FDIC. As much of your account balance as you’d want to invest in risky assets is completely up to you. The investor can pick a moderate, high, or extreme level of risk for their portfolio.