Financial Planning for Special Considerations

Financial Planning: Where to Start?

Financial Planning for families and individuals with special considerations can be challenging. There are some great tools to help but finding time to learn about them can be difficult, even on a good day.

One of the newer and exciting financial tools that have become available recently is the ABLE account. The ABLE Act (Achieving a Better Life Experience) was passed by congress in 2014 to allow individuals with disabilities to address the rising cost of services and care.  Before the act was passed, an individual essentially had to be ‘poor’ to qualify for greatly needed services and programs. If the assets of an individual were over $2000, benefits would begin to be reduced or eliminated entirely. With the ABLE act in place, ABLE accounts can be used to supplement other benefits (SSI, SSDI, etc.) to further enhance quality of life. 

So, how does it work?

The Act limits eligibility to individuals with significant disabilities with an age of onset before turning 26 years of age. Over the age of 26 are not eligible to open an account. The maximum yearly contribution is $15,000 for 2109. Different states have different maximum account limits, but for all states the first $100,000 of savings have no impact on SSI. Over $100,000 may suspend SSI benefits (but no impact on Medicaid benefits). 

Is it right for your family?

Maybe.  There are a few other considerations when using an ABLE account and that would be a conversation to have with a professional who can get to know you and your family goals.  For more information or any questions, please feel free to reach out to me at adam@mainsailfg.com and it would be a privilege to help.

Article originally appeared in NorthwestCenterKids Family Connect.  Adam will be hosting a workshop with Northwest Center for families with special planning needs on March 11, 2020.  For enrollment information, contact adam@mainsailfg.com.