HELP AVOIDING THE BENEFITS CLIFF
Dante Allen uses his ABLE account to pay for out-of-pocket costs on mobility equipment, like upgrades on his wheelchair.
“It is a
great way to grow money long term … better than a Roth IRA or other IRA.
An IRA has a
significant penalty if you withdraw money before you are 59 ½ years old,” he
says.
“But you can
withdraw ABLE account money for any qualified expense at any age.”
HELP AVOIDING THE BENEFITS CLIFF
ABLE accounts are structured like individual retirement accounts.
You put money in them after taxes, and don’t have to pay taxes on any investment profits.
Dante Allen is a wheelchair user and the executive director of the board at California Achieving a Better Life Experience, the organization that runs California’s ABLE program.
Through CalABLE, Allen owns an ABLE account and sees
it as a useful financial tool, even though he has a good job and does not
qualify for government benefits.
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Under the amended law, it won’t matter how old you are when you want to open an ABLE account, just how old you were at the onset of your disability.
Otherwise,
all you need is a doctor’s signature that you have “severe functional
limitations” lasting longer than a year. If you’re a wheelchair user, you’re
almost certain to qualify.
Eric
Ochmanek, program director at the National Association of State Treasurers, is
promoting ABLE accounts through ambassadors and the abletoday.org website.
He says
opening an ABLE account takes about 20 minutes online.
You have the
option of creating a savings account, which pays low interest but protects
every dollar contributed, or an investment account, which comes with
potentially higher growth but also the risk of losses if stock markets decline
like they did in 2022.
“ABLE allows
people with disabilities to accumulate wealth,” he says.
“It gives
them choice for financial inclusion and empowerment, all while maintaining
their Medicaid and [Supplemental Security Income] benefits.”
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When Congress created ABLE accounts in 2014, they restricted them to people who acquired their disabilities before the age of 26.
Mark Raymond was paralyzed as the result of a diving accident at age 27.
Fortunately, in December 2022, Congress
passed an adjustment that raises the eligibility age to 46. Raymond will
finally be eligible when the new rules take effect Jan. 1, 2026.
“A tax-free savings account — you bet I will open one the day I’m eligible. I have expenses that would be nice to cover with ABLE account savings,” Raymond says.
“Home renovations could be saved for and funded. One time my (wheelchair) armrest broke and it cost $2,000 to fix it — not covered by insurance, so again, ABLE savings would help.”
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We talked with experts and wheelchair users in a variety of financial situations to find out more about the best-kept financial secret in the disability community.
The
consensus: As long as you’re eligible, there’s no reason not to open an ABLE Account.
Mark Raymond Jr. of New Orleans serves as national outreach lead for ABLE Today, the National Association of State Treasurers Foundation’s campaign to promote awareness of ABLE accounts.
An enthusiastic advocate, Raymond, a C5 quadriplegic, knows the benefits of an ABLE account as well as anyone, but is ineligible to open one.
Thankfully, that’s about to change.
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Dante Allen used his savings to pay for an upgrade to his everyday wheelchair.
Valerie Crisci is saving money to cover costs related to her service dog.
Gayle
Stanford used her savings to pay off her home mortgage so she could better
afford recurring medical expenses.
Disability life is expensive.
There are a thousand potential costs that nondisabled people rarely have to think about.
Achieving a Better Life Experience accounts offer an easy, tax-advantaged way to save for disability-related expenses, plus they let you save without violating draconian disability benefits asset limits.
Thanks to a recent federal law that expanded ABLE age limits, more people than
ever will soon be eligible for these accounts.
CITY DECIDES PEOPLE WITH DISABILITIES ARE NOT WORTHY OF OUTDOOR STREET CAFÉ SEATING
What city spends millions of dollars
making its main street more pedestrian friendly and inclusive?
Then permits 100% of sidewalk cafe
tables that are high tops completely inaccessible to wheelchair users.
This is Coral Gables ON Miracle Mile.
This is in the public right of way, so
there must be some kind of permitting.
Who allows a design that discriminates
against people with disabilities?
It is called ableism.
It is just as bad as not allowing
people of color to sit there – which would be racism.
