If you’re receiving Supplemental Security Income (SSI) benefits and have a disabling condition that was diagnosed when you were 46 years old or younger, there’s an important tool that you should know about: an ABLE account.
An ABLE account is a tax-advantaged savings account that’s designed to help individuals with disabilities save for their long-term needs without impacting their eligibility for government benefits, like SSI and Medicaid.
Here’s how an ABLE account can help you:
- Save money without impacting your SSI benefits: With an ABLE account, you can save up to $15,000 per year without impacting your eligibility for SSI benefits. This means that you can save for your long-term needs, like housing or transportation, while still receiving the benefits you need to make ends meet.
- Enjoy tax-free savings: ABLE accounts offer tax-free savings for disability-related expenses, which means that you won’t have to pay taxes on the money you save or on the earnings generated by your account.
- Maintain greater financial independence: With an ABLE account, you maintain control of the account and can decide how to spend the funds, giving you greater flexibility to meet your individual needs.
To be eligible for an ABLE account, you must have a disability that occurred before age 26 and be receiving SSI or Social Security Disability Insurance (SSDI), or submit a certification of your disability to the ABLE program.
In conclusion, if you’re receiving SSI benefits and have a disabling condition that was diagnosed when you were 46 years old or younger, opening an ABLE account can help you achieve greater financial security and independence. By taking advantage of this program, you can save for your long-term needs without impacting your eligibility for government benefits and enjoy tax-free savings.
Reference Link : https://www.ssa.gov/ssi/spotlights/spot-able.html