The ABLE Act of 2014

The Achieving a Better Life Experience (ABLE) Act of 2014 introduced a game-changing solution for individuals grappling with the difficult choice between disability benefits and employment. This legislation addresses the challenge of income restrictions that often force individuals to choose between essential benefits and work opportunities.

Before the ABLE Act, individuals receiving Social Security Income (SSI) or Social Security Disability Income (SSDI) faced strict income limits. Earning above a certain threshold could result in the loss of crucial benefits like healthcare coverage. This created a precarious situation where pursuing employment could jeopardize financial stability.

The ABLE Act introduced ABLE Savings Accounts, a specialized savings tool designed to alleviate this dilemma. These accounts allow individuals to save and earn income without risking their eligibility for benefits. Account holders can save up to $100,000 and spend up to $2,000 per month without impacting their benefits.

Navigating Disability Benefits and Employment 

Additionally, the ABLE Act offers tax advantages, allowing disabled individuals to own assets like vehicles, homes, and burial plots tax-free. It also provides a higher income threshold for employment, enabling individuals to earn up to $35,000 per year without losing benefits.

While the ABLE Act presents a significant step forward, it's important to note that specific details and benefits can vary by state. For those seeking more information, the ABLE National Resource Center offers comprehensive resources and guidance.

Remember, the ABLE Act is a valuable tool that empowers individuals with disabilities to achieve greater financial independence and pursue employment opportunities without sacrificing essential benefits.

What are ABLE Accounts? - ABLE National Resource Center. (2023, June 13). ABLE National Resource Center. https://www.ablenrc.org/what-is-able/what-are-able-acounts/

https://www.youtube.com/watch?v=iD8i9moC2G4

Video by Elizabeth Larson. Link at https://www.youtube.com/watch?v=iD8i9moC2G4

"The Achieving a Better Life Experience (ABLE) Act of 2014 allows states to create tax-advantaged savings programs for eligible people with disabilities (designated beneficiaries). Funds from these 529A ABLE accounts can help designated beneficiaries pay for qualified disability expenses. Distributions are tax-free if used for qualified disability expenses."
From www.irs.gov