The ABLE Act: A new type of savings vehicle for the first time offers the disabled and their families the benefits of tax-free growth.
This new savings plan for individuals with disabilities (called 529 ABLE) was authorized by Congress in late 2014. It is similar to 529 college plans, but it allows people with disabilities and their families to establish tax free savings for “qualified expenses” that include education, housing, transportation, employment training, legal fees and funeral expenses. In addition to offering tax-free growth, 529 ABLE plans will allow people with disabilities to save as much as $100,000 and still qualify for benefits including Medicaid and Supplemental Security Income (SSI). For more info see: