If you or a family member is disabled it is advisable to put away some of their stimulus aid in special accounts in order to keep their funds safe.
These special accounts are called Achieving a Better Life Experience (ABLE) accounts. These types of special savings accounts were introduced in 2016 as a vehicle for people with disabilities to achieve “greater financial security and more independence.”
By using ABLE accounts, those with disabilities “can save money in the tax-favored accounts without risking the loss of need-based government benefits, like health insurance or supplemental income.”
As of now, 43 states and Washington D.C. including Florida, offer ABLE. Although these special accounts have been around for a few years, interest in the accounts has grown due to federal pandemic relief putting more cash in people’s hands. ABLE advocates are spreading the word about the importance of saving some or all of stimulus check funds in these special accounts.
The benefits of taking advantage of ABLE accounts by placing stimulus aid funds in them include:
- People with disabilities often struggle financially and rely on federal aid, and cannot qualify for Medicaid or Supplemental Security Income if they have more than $2,000 in savings or other assets. These accounts help low-income disable people avoid this detriment.
- Stimulus payments are not considered income, meaning you can spend the money how you please. However, if the money isn’t spent within 12 months, it will be counted against asset limits and could disqualify disabled people from benefits. If this money is deposited in an ABLE account, it will not be considered when counting toward the $2,000 cap.
Call the Law Offices of Debra G. Simms at 386.256.4882 to learn more. We are currently offering free consultations via video conference to assist you with your needs.
This blog post is not case-specific and is provided only for educational purposes and is not intended to provide specific legal advice. Blog topics may or may not be updated and entries may be out-of-date at the time you view them.