Achieving a Better Life Experience (“ABLE”) Act, passed by Congress in 2014, is coming to Washington State this August.
ABLE accounts will allow persons with disabilities, their family members and friends the ability to contribute up to $14,000 per year. Provided they are used for a qualifying disability expense, the account contributions, earnings and withdrawals are tax-free.
All withdrawals from ABLE accounts are self-directed and do not require oversight by a trustee or trust fund manager. Savings held in an ABLE account, up to a $100,000 total limit, cannot be counted as a personal asset when determining qualification for Social Security Disability Insurance and some other state, local and federal benefits including housing and Medicaid.
ABLE accounts are different than special needs supplemental trusts, such as the Developmental Disabilities Endowment Trust Fund. If your family member has a developmental disability (as determined by the Washington State Developmental Disabilities Administration), contact the ETF office to learn more.
We’ll post an update and website information as soon as ABLE is available here in Washington. In the meantime, you can learn more about ABLE accounts here.