President Obama signed an act called Achieving a Better Life Experience Act on December 19, 2014. This is now called the ABLE Act. This new law will allow certain individuals with disabilities to create tax-free savings accounts. These savings accounts will be available for certain folks who are qualified for Medicaid to use to cover expenses not otherwise covered by government-sponsored programs. What a wonderful alternative or supplement to a special needs or supplemental needs trust.
Here are five important things you need to know about the ABLE Act.
1. What is an able account? An ABLE account is a lot like a 529 education savings plan that families use to