A Better Life Experience (ABLE) accounts are savings accounts for individuals with disabilities. If you would like to be able to save more than $2,000 for rainy days in your future, ABLE accounts are for you.
Seven Things You Need to Know About ABLE Accounts
1. What is an ABLE account?
ABLE accounts are new savings accounts, specifically for individuals with disabilities. This is a way for you to save money without losing any of your SSI or SSDI benefits — or any other federal, means-tested benefits. ABLE accounts were created with the hope they would help individuals have the opportunity for independence and self-reliance.
2. Do I qualify for an ABLE account?
Now that you know what an ABLE account is, you are probably asking if an ABLE account is right for you. There are very few qualifications to meet for ABLE accounts. First, you must have a disability. Second, the age of onset of your disability must be before age 26. However, that does not mean that you must have been diagnosed before age 26. If your disability started at age 15, but you weren’t diagnosed until age 32, you can still qualify for an ABLE savings account.
3. Who should open an ABLE account?
An ABLE account is right for you if you’re someone with a disability, and you want to be able to save more than $2,000 at a time. This is particularly true if you are working a job. You can save $15,000 a year in an ABLE account without affecting your SSI benefits, and you can save up to $100,000 within an account.
4. When can I use an ABLE account?
You might have many questions about when you can use savings from an ABLE account. The quick answer is: any living expenses related to a disability. But as these accounts are new, there is some experimentation involved in finding out what limits exist, if any. One goal in creating ABLE accounts is to end the isolation within the community, so there is a lot of wiggle room in what counts as disability related.
5. What options do I have with an ABLE account?
There are several options that will be presented when you choose to open an ABLE account. You can either open a checking account or one of six risk-targeted investment options. It is important to discuss these options with someone you trust before making a decision.
6. How do I open an ABLE account?
You should not go to a bank and try to open one of these accounts because most people won’t know what you’re referring to. You can open an ABLE account online through the ABLE IL website or by calling the Illinois ABLE office.
7. Whose name is a debit card in with an Authorized Individual?
If there is an Authorized Individual included on the ABLE account, any debit card would be issued in the Authorized Individual’s name. This means that if an individual is unable to make financial decisions on their own, a parent or legal guardian is able to make sure the money is spent when necessary.