Congress Passes ABLE Act to Create Tax-Free Savings Accounts for People with Disabilities

Congress has passed a new law allowing individuals with disabilities and their families to create tax-free savings accounts.

Hook Law Center (formerly Oast & Hook)

Virginia Beach, VA (Law Firm Newswire) December 18, 2014 – The Achieving a Better Life Experience or ABLE Act passed Congress and is expected to be signed by President Obama. The law allows family members of individuals with disabilities to deposit funds in special accounts, the income for which will remain tax-free, provided it is spent on qualified expenses such as housing, health care, education and transportation.

“This is great news for people with special needs and their families,” said Andrew H. Hook, a Virginia special needs planning attorney with Hook Law Center, with offices in Virginia Beach and northern Suffolk. “These savings accounts will allow individuals with disabilities to lead more independent lives.”

In addition to permitting tax-free savings for qualified expenses, ABLE accounts will allow people with disabilities to build their assets without affecting their eligibility for public assistance programs. The ABLE Act provides that funds within the accounts will not be counted when determining eligibility for need-based programs such as Medicaid and Supplemental Security Income (SSI), though some limitations are included in the legislation. Family members of eligible individuals with disabilities can contribute up to $14,000 per year to such an account, up to a maximum of $100,000. If an account exceeds $100,000, SSI payments will be suspended. Only individuals who became disabled prior to age 26 will benefit from this new legislation.

The new legislation has been described as one of the most important laws to affect Americans with disabilities since the passage of the Americans with Disabilities Act of 1990.

“I look forward to helping special needs families use this important new tool to build a brighter future,” said Hook.

Learn more at http://www.hooklawcenter.com/

Hook Law Center
295 Bendix Road, Suite 170
Virginia Beach, Virginia 23452-1294
Phone: 757-399-7506
Fax: 757-397-1267

SUFFOLK
5806 Harbour View Blvd.
Suite 203
Suffolk VA 23435
Phone: 757-399-7506
Fax: 757-397-1267
http://www.hooklawcenter.com/

• Avoiding retirement planning pitfalls
  Although most people are aware of how important it is to plan for retirement, it is easy to fall into retirement planning pitfalls that have significant consequences down the line. One of the most common pitfalls is money itself. Many people simply do not save enough early enough. It is recommended that people save enough […]
• Seniors and their families should apply good judgment in considering nursing home placement services
  Nursing home placement services, which offer to help find the perfect housing for seniors, are a growing trend in elder care. These services are offered for no charge, and they claim to demystify the world of elder care facilities. However, seniors and their families should use good judgment in choosing a nursing home placement service. […]
• Aid and Attendance benefit can help veterans who need long-term care
  Veterans who need long-term care services like in-home care or residence in a nursing home can receive financial assistance through the Veterans Administration (VA) pension benefit Aid and Attendance. This often-overlooked benefit provides money to veterans who need help with day-to-day tasks. The pension is designed for veterans and surviving spouses who require help to […]
• Older people without children may wish to designate a caregiver
  Older adults who do not have children do not have the built-in support system from which many people with children benefit, which puts them at risk if they become ill or injured. In order to ensure they receive good care that is in alignment with their wishes, these individuals should designate a caregiver while they […]
• To help prevent elder abuse, address caregiver stress as it emerges
  Elders are among the most vulnerable populations, and they are at special risk for abuse at the hands of their caregivers. Caregiver stress is one of the biggest contributing factors to elder abuse, and stressed-out caregivers are the most likely to abuse. Depression and anxiety are common among caregivers, who often provide hours of care […]