The ABLE Act is a positive step in the direction of assisting families in financially planning for their loved one with special needs. The ABLE Act allows for the establishing of a tax-free savings account under section 529 of the Internal Revenue Code (similar to the college savings accounts). A person may contribute up to $14,000 per year to the ABLE account. The savings account does have a $100,000 cap and generally will NOT affect SSI and Medicaid benefits. Please contact me for more information about this and setting up Special Needs Trusts for your child with a disability.
The ABLE Act (this is federal legislation and applies to all 50 states) was signed into law by President Obama in December, 2014. New York State's version will now go before New York Governor Cuomo for his consideration. On Friday, June 19, 2015, the ABLE Act passed the New York State Assembly and New York Senate. A.7767B (same as S.4472D). The measure will now be delivered to the Governor for consideration. The IRS also issued proposed regulations on June 19th which will be in the June 22nd Federal Register.