An Extra Happy Holiday With The ABLE Act

Most enjoy the holidays but this season there is an extra reason to be thankful. The eight-year struggle to get the Achieving a Better Life Experience (ABLE) Act passed is finally over. President Obama signed the Act December 19, 2014. The ABLE Act allows people with disabilities to open a tax-free savings account that doesn’t jeopardize their government benefits. The program is modeled after a 529 college savings plan, where interest is earned on savings and is tax-free. This means that each state will need to create a 529 to implement the program. Senator Richard Burr stated, “We can’t mandate that a state will create a 529, but given the lobby that we’ve seen, I think by the end of next year, I think we’ll see this in every state.” Hopefully, this will be the case as we continue to follow the ABLE Act’s progress. For more information Click Here.