Achieving Better Life (ABLE) Savings Account

A tax-advantaged savings account for individuals living with a disability

If you or a loved one are living with a disability, you may benefit from opening an Achieving Better Life (ABLE) Savings Account. This type of account is relatively new, and it is designed to give certain individuals living with disabilities the opportunity to have a savings account while remaining eligible for public benefits including SSI, SSDI, SNAP, and Medicaid. ABLE accounts are similar in concept to Section 529 College Savings Plans. The federal ABLE Act was passed in 2014, and many states have since adopted ABLE Savings Plans. South Carolina’s plan, SC ABLESM, is only open to South Carolina residents, but several other states’ plans are open to residents across the country. You can compare plans to determine which plan best fits your needs.

Contributions

SC ABLESM is a tax-advantaged savings account with a total annual contribution limit of $15,000. If the beneficiary is employed, he or she is eligible to contribute up to an additional $12,060 per year. All contributions may be deducted from South Carolina individual income taxes. You can open an account with as little as $50, and there are no fees or restrictions to the number of disbursements you can take.

Using Your Funds

According to the ABLE National Resource Center website, ABLE funds can be used tax-free for any qualified disability expense including: “expenses related to education, housing, transportation, employment training and support, assistive technology, personal support services, health care expenses, financial management and administrative services and other expenses.” However, distributions which are not used for qualifying expenses are subject to income taxes and penalties.

Loadable Debit Card

Participants will receive a STABLE Loadable Debit Card at no extra cost. Because the STABLE debit card is loadable, you can designate an amount available to spend at any point. This helps protect your entire account balance against fraud in case your card is lost or stolen.

Monitoring Your Account

It is important that you monitor your account to track investment performance, recognize possible debit card fraud, and to ensure you continue to qualify for any necessary public benefits. According to the ABLE National Resource Center website, “only the first 100,000 dollars in the ABLE account is protected from the SSI asset limit.” Learn more about monitoring your account on the ABLE National Resource Center website.

Interested in Learning More?

Learn more about the program and find out if you or a loved one could be eligible for this benefit on the ABLE National Resource Center website. Before setting up an account, contact our office for additional resources and guidance to determine if you or your loved one is eligible.

Securities offered through FinTrust Brokerage Services, LLC (Member FINRA/ SIPC) and Investment Advisory Services offered through FinTrust Capital Advisors, LLC.  Insurance services offered through FinTrust Capital Benefit Group, LLC. Any views expressed in this message are those of the individual sender, except where the message states otherwise and the sender is authorized to state them to be the views of any such entity. Trade instructions may not be accepted via email.  This material does not constitute an offer to sell, solicitation of an offer to buy, recommendation to buy or representation as the suitability or appropriateness of any security, financial product or instrument, unless explicitly stated as such in the text of the email. Past performance is not necessarily indicative of future returns. Performance numbers have not necessarily been independently reviewed or audited and therefore we make no representation as to its accuracy. Any reference to the terms of any contracts should be treated as preliminary only and subject to our formal written confirmation. This information should not be construed as legal, regulatory, tax, or accounting advice. This message (and any attached materials) is for the sole use of the intended recipient(s) and may contain information that is privileged, confidential and exempt from disclosure under applicable law.  Any review, dissemination, distribution or duplication of this communication is strictly prohibited.  If you are not the intended recipient, please contact the sender immediately by reply e-mail and destroy all copies of the original message. This is an advertisement from FinTrust Capital Advisors. 

FinTrust Capital Advisors, LLC and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Related Posts

You must be logged in to post a comment.
Menu