ABLE United - Florida ABLE Act Program
BY Laurie Menekou
May 27, 2016

What is the ABLE Act?

Historically, persons with a disability often face unique challenges when trying to save for future needs. Due to restrictions on holdings, assets and net worth (means testing), traditional savings options for persons with a disability may have compromised the continued receipt of federal or state benefits in years past.

In response to these challenges, The Achieving a Better Life Experience (ABLE) Act was introduced. The ABLE Act amends Section 529 of the Internal Revenue Service Code of 1986 to create tax-free savings accounts for individuals with disabilities. On Friday, December 19, 2014, President Obama signed the Tax Extenders package, making the ABLE Act the law of the land.

The Achieving a Better Life Experience (ABLE) Act of 2014 now authorizes each state to establish a qualified ABLE program to offer savings and investment options similar to a college savings account to individuals with a disability and their families. The purpose of an ABLE account is to encourage and assist individuals and families to save private funds for the purpose of supporting individuals with disabilities to maintain health, independence and quality of life.

Key benefits of establishing an ABLE account include:

The balance of an ABLE account is disregarded from means-tested federal programs.
Earnings in an ABLE account are tax-free under Section 529A of the Internal Revenue Code, as long as the funds are used to pay for qualified disability expenses. (Similar to a college savings account such as the Florida Prepaid College Savings Plan)

An ABLE account is intended to supplement, but not replace, the benefits provided through private insurances, Medicaid, Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), the beneficiary’s employment, and other sources.

To learn more about eligibility, qualified expenses, limitations, as well as sign up for program updates, you can visit the ABLE United website at The expected program start date in the state of Florida will be on or before July 1, 2016.

Watch Victory Living’s Facebook page, website, and newsletters for future seminars on the ABLE United program.

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