ABLE accounts

[kathyc2]

I haven't looked at this much, but on the surface I'm not seeing the benefit, especially for middle class. The only tax break I'm seeing is the earnings in the account are tax free if used for the intended purpose. Say grandparents are well off and put 14K into an account for their disabled grandchild. If the grandchild then uses it, would not that count as funds provided for their own support and possibly exclude parents from claiming them as a dependent based on 1/2 support test? Seems if the parents are middle income it would be better for the grandparents to gift the amount to the parents with an understanding that it's to help with the grandchilds expenses. Am I missing something?

[New York Enrolled Agent]

Rather than have these disabled folks be basically required to be impoverished to have government benefits, these accounts can be funded up to $100,000 and not be a dis-qualifier for benefits such as SSI and Medicaid. Think of adults who are disabled and will be able to accumulate funds for special expenditures in their future.

[kathyc2]

Rather than have these disabled folks be basically required to be impoverished to have government benefits, these accounts can be funded up to $100,000 and not be a dis-qualifier for benefits such as SSI and Medicaid. Think of adults who are disabled and will be able to accumulate funds for special expenditures in their future.

That makes more sense then if it's not a disqualifier for nursing home/Medicaid up to the limit.

I knew someone here would have looked at it in more detail than I have. Thanks.

[TAXNJ]

States

I haven't looked at this much, but on the surface I'm not seeing the benefit, especially for middle class. The only tax break I'm seeing is the earnings in the account are tax free if used for the intended purpose. Say grandparents are well off and put 14K into an account for their disabled grandchild. If the grandchild then uses it, would not that count as funds provided for their own support and possibly exclude parents from claiming them as a dependent based on 1/2 support test? Seems if the parents are middle income it would be better for the grandparents to gift the amount to the parents with an understanding that it's to help with the grandchilds expenses. Am I missing something?

Still getting familiar with ABLE (Federal) and know it does not interfere with the Social Security Disability limitation of $2k in assets in a given month. But now the problem is how each state is going to handle the particular states' $ limitation in a given month if the disabled is also getting state funding.

[Burke]

Think of adults who are disabled and will be able to accumulate funds for special expenditures in their future.

One of the qualifiers is, as I understand it, that the disability must have begun prior to age 26.