Supplemental Security Income (SSI) – ABLE Act
Recipients of Supplemental Security Income (SSI) can only have a limited amount of income and resources before their benefits are reduced or eliminated. While a cap on income and resources for Supplemental Security Income (SSI) is a worthwhile requirement in most circumstances, it is often a drastic and punitive measure for those that are severely disabled from a young age. Those individuals often never had a chance to work and build earnings. In 2014, Congress passed legislation to provide relief for those that suffer disabilities at a young age and allow them to accumulate funds.
The Achieving Better Life Experiences (ABLE) Act became law in December of 2014. It allows SSI recipients who became disabled before age 22 to open 529A accounts to be used to disability-related expenses. The holdings in the accounts can grow without the earnings being taxed and up to $100,000 can be held without affecting the recipient’s SSI eligibility. Each state will have to set up its own framework for 529A accounts. Additionally, the IRS and Treasury Department recently released a Notice of Proposed Rulemaking for ABLE accounts (80 Fed. Reg. 35602) addressing such things as who can establish an account, how disability will be determined and recertified, how residency is determined, etc.
If you need more information about a Social Security Disability/SSI matter, personal injury matter (car wreck, boating accident, slip and fall, etc.), EEOICPA claim, long or short-term disability, VA disability, or a workers compensation matter, please contact the Law Offices of Tony Farmer and John Dreiser for a free case evaluation. We can be reached at (865) 584-1211 or (800) 806-4611 or through our website.