Definition
An Achieving a Better Life Experience account (ABLE account) is a tax-advantaged savings account for qualified individuals with disabilities (often referred to as “accountholders” or “designated beneficiaries”) (Pub. L. No. 113–295 2014). ABLE accounts allow beneficiaries to save funds without losing their eligibility for state and federal government benefits programs such as Medicare, Medicaid, Social Security, Supplemental Security Income (SSI), and Supplemental Security Disability Income (SSDI). ABLE account funds can be used for a broad range of health, wellness, and living expenses to support the beneficiary. ABLE accounts are sometimes referred to as “529A accounts” or “529A Savings Plans” because the ABLE Act amends Section 529 of the US Internal Revenue Code.
History of ABLE Accounts
The Stephen Beck Jr. Achieving a Better Life Experience (ABLE) Act was signed into law on December 19, 2014. The US Congress has since amended the original ABLE Act by passing other...
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References and Reading
Abbey, B., & Hershey, L. (2016). Does the ABLE Act enable the wealthy and disable the poor? Journal of Financial Service Professionals, 70(2), 46–52. Retrieved from https://www.emich.edu/cob/documents/2016_does_the_able_act_enable_the_wealthy_and_disable_the_poor.pdf
ABLE National Resource Center. (2020a). Get started: Search by ABLE program features. https://www.ablenrc.org/state-plan-search/
ABLE National Resource Center. (2020b). Get started: View all state programs. Retrieved from https://www.ablenrc.org/select-a-state-program/
Alaska ABLE Plan: A member of the national ABLE alliance. (2020). Home. Retrieved from https://savewithable.com/ak/home.html
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Stephen Beck, Jr. Achieving a Better Life Experience Act of 2014, Pub. L. No. 113–295, 128 Stat. 4010, codified at 26 U.S.C. § 529A. Retrieved from https://www.congress.gov/bill/113th-congress/house-bill/5771/text/enr?r=123
Consolidated Appropriations Act of 2016, Pub. L. No 114–113, codified as amended at 26 U.S.C. § 529A. Retrieved from https://www.congress.gov/bill/114th-congress/house-bill/2029/text
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Illinois Able. (2020). Plan disclosure documents. Retrieved from https://cdn.unite529.com/jcdn/files/UABLE/pdfs/il-programdescription.pdf
Iowa IAble. (2020). Qualified expenses withdrawal log. Retrieved from https://www.iable.gov/resources/qualified-expenses-withdrawal-log
Kelly, A., & Hershey, L. (2018). A 50 state review of ABLE Act 529A accounts. Journal of Financial Service Professionals, 72(2), 69–84. Retrieved from https://www.emich.edu/cob/documents/a_50_state_review_of_able_act_ccounts.pdf
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McGee, C., & Ferguson, G. (2017). A primer on ABLE accounts. University of Richmond Law Review, 52, 149–180. Retrieved from http://lawreview.richmond.edu/files/2017/11/McGee-521A.pdf
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Tax Cuts and Jobs Act of 2017, Pub. L. No. 115–97, codified as amended at 26 U.S.C. § 529A. Retrieved from https://www.congress.gov/bill/115th-congress/house-bill/1/text
U.S. Internal Revenue Service. (2020a). ABLE accounts – Tax benefit for people with disabilities. Retrieved from https://www.irs.gov/government-entities/federal-state-local-governments/able-accounts-tax-benefit-for-people-with-disabilities
U.S. Internal Revenue Service. (2020b). Instructions for forms 1099-QA and 5498-QA: Distributions from ABLE accounts and ABLE account contribution information. Retrieved from https://www.irs.gov/instructions/i1099qa
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Kelly, A.M., Marsack-Topolewski, C.N. (2020). Achieving a Better Life Experience Savings Account (ABLE Savings Account, ABLE Account, 529A Savings Plan, and 529A Account). In: Volkmar, F.R. (eds) Encyclopedia of Autism Spectrum Disorders. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-6435-8_102513-1
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