FINANCIAL PLANNING
Changes to the ABLE Account
Rules You Need to Know
By Ryan F. PLATT, MBA, ChFC, ChSNC
Could you describe the changes in the ABLE account rules that were
brought about by the new federal tax legislation?
A
s most of you know, the ABLE Act was
passed at the end of 2014 and paved the
way for individuals diagnosed with disabil-
ities before the age of 26 to save money
without the danger of forfeiting eligibility
for government benefits such as Supple-
mental Security Income (SSI) and Medic-
aid.
Two concerns that disability organizations, families,
individuals, and professionals discovered were:
The annual funding limit ($15,000 in 2018)
The lack of an ability to transfer existing 529
college savings plans to ABLE accounts with-
out penalty
Disability community advocates, almost immediate-
ly, began lobbying for these items to be addressed
in some form or fashion. The community realized
that individuals with disabilities who did work did
not have the flexibility needed to save more money
especially if other family members were also contrib-
uting to their ABLE accounts. The community also
realized that many families had begun 529 college
savings accounts before their children were diag-
nosed or because their children were academically
successful; however, when the children were unable
64 | Autism Parenting Magazine | Issue 74