Columns The MS Wire - A Column by Ed Tobias A Primer on ABLE Accounts for Americans With Disabilities A Primer on ABLE Accounts for Americans With Disabilities Congress recently raised the age limit of diagnosis in order to qualify by Ed Tobias | February 3, 2023 Share this article: Share article via email Copy article link Have you ever heard of an ABLE savings account? I hadn’t until a couple weeks ago. The acronym stands for the Achieving a Better Life Experience Act, a law passed by the U.S. Congress in 2014. It created special savings accounts that allow disabled Americans, including people with multiple sclerosis (MS), to save money without jeopardizing their public benefits such as Medicare, Supplemental Security Income (SSI), and food stamps. People in these programs are generally limited to having $2,000 in liquid resources, such as cash savings, standard bank accounts, and some retirement funds. Money saved in an ABLE account doesnāt count toward that total. Recommended Reading September 15, 2021 by BioNews Staff Expert Voices: Financial planning for people with multiple sclerosis Save to pay disability expenses Similar to the better-known 529 college savings accounts, an ABLE account ā known in tax code lingo as a 529A account ā can help pay for disability expenses. In addition to healthcare expenses, these include things such as housing, transportation, food, and personal services ā things that help to improve one’s health, independence, or life quality. ABLE accounts are offered in 46 states, and the distributions are tax-free if they’re used for qualified disability expenses. Contributions can be made by anyone ā the account holder, family, friends ā and in some states (not all), they are tax-deductible. This year, the contribution limit is $17,000, but if a disabled person who is the account beneficiary is employed they can contribute extra from their earnings, up to the current poverty level for a single person. That’s $14,580 in most states this year, for an annual total of $31,580. A big change should benefit people with MS ABLE accounts don’t seem to be very well-known, probably because they’ve been available only to people who became disabled prior to age 26. But that’s changing. The big spending bill that Congress passed in December included the ABLE Age Adjustment Act, which raised the age threshold for disability to 46. According to The New York Times, this could increase the number of people eligible for an ABLE account from an estimated 8 million to about 14 million. Since most people with MS are diagnosed when they are between the ages of 20 and 50 (I was diagnosed at 32), upping the age threshold can make a big difference to people with MS, especially those being treated with high-priced disease-modifying therapies. Hurry up and wait When it comes to financial programs, the wheels of government move as slowly as I do on my crutches. The new ABLE regulations wonāt take effect until January 2026, so it will be a few more years before the threshold will increase to 46. But you can still open an ABLE account if you were diagnosed before 26. If you were older when you were diagnosed, you can still begin researching these accounts to start contributions in three years. Obviously, that’s not great news, but something is better than nothing when it comes to savings and possible tax deductions. You’re invited to visit my personal blog at www.themswire.com. Note:Ā Multiple Sclerosis News TodayĀ is strictly a news and information website about the disease. It does not provide medical advice,Ā diagnosis, orĀ treatment. This content is not intended to be a substitute for professional medical advice,Ā diagnosis, orĀ treatment. Always seek the advice of your physician or other qualified health provider with any questions you may have regarding a medical condition. Never disregard professional medical advice or delay in seeking it because of something you have read on this website. The opinions expressed in this column are not those ofĀ Multiple Sclerosis News TodayĀ or its parent company, BioNews, and are intended to spark discussion about issues pertaining to multiple sclerosis. Print This Page About the Author Ed Tobias People say to write what you know and Ed Tobias knows about MS. He's lived with the illness since 1980, when he was 32 years old. Ed's a retired, award-winning broadcast journalist and his column combines his four decades of MS experiences with news and comments about the latest in the MS community. In addition to writing his column, Ed is one of the patient moderators on the MS News Today Facebook, Twitter, and Instagram sites. Heās also the author of āThe Multiple Sclerosis Toolbox: Hints and Tips for Living with M.S.ā Ed and his wife split their time between the Washington, D.C. suburbs and Floridaās Gulf Coast, trying to follow the sun. Comments Lisa Matthews Hi Ed, Thanks for sharing this very important news. Reply Ed Tobias And thanks for being one of my favorite readers! Ed Reply inquiry Is there a penalty for opening an able account early? if you won't techinically qualify until 2026? Most disabled individuals would probably be under the taxable income anyway so do we have to wait as long as we don't make any withdrawls? Reply Leave a comment Fill in the required fields to post. Your email address will not be published. Your Name Your Email Your Comment Post Comment
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