There's no limit to what people with disabilities can do. Now, that includes saving, too. The ABLE Savings Program allows Kansans living with a disability the opportunity to save for their future. With the Kansas ABLE Savings Plan, you can save for qualified disability expenses without losing your eligibility for certain assistance programs, like SSI and Medicaid.
Signing up for ABLE is quick and easy at savewithable.com/ks/home.html.
An ABLE account is a tax-advantaged savings account that qualified individuals with disabilities may open. Contributions to ABLE accounts are made on an after-tax basis. Earnings from ABLE funds grow tax-deferred and are tax-free if used for qualified disability expenses. Contributions to the account may be made by any person. Funds in the account may be used for “Qualified Disability Expenses” which include: Education, Housing, Transportation, Employment training and support, Assistive technology and related services, Health, Prevention and wellness, Financial management and administrative services, Legal fees, Expenses for ABLE account oversight and monitoring, Funeral and burial, and Basic living expenses.
Individuals with disabilities can only have $2,000 in assets at any given time in order to remain eligible for many federal means-tested benefits programs, such as Supplemental Security Income (SSI). Under ABLE, eligible individuals and families may establish ABLE savings accounts that will not affect their eligibility for SSI (up to $100,000), Medicaid and other public benefits. ABLE accounts provide a mechanism to essentially increase this $2,000 asset limitation so that individuals with disabilities and their families can save money for their future and to improve their quality of life.
There are two requirements to be eligible for an ABLE account: an age requirement and a severity of disability determination. The onset of symptoms of the person’s disability must have occurred before age 26. Additionally, the disabled individual must have “marked and severe functional limitations” (Social Security definition of disability). An individual whose disability occurred prior to age 26 and is already receiving SSI and/or SSDI is automatically eligible to establish an ABLE account. Those who are not recipients of SSI and/or SSDI but still meet the age of onset disability requirement will be eligible to open an ABLE account upon obtaining a disability certification from their physician.
Pursuant to federal law, the basic annual contribution limit for an ABLE account is $15,000. This basic annual limit is the sum of any contributions by the beneficiary, family and/or friends. However, if the account owner is working but not participating in an employer-sponsored retirement plan, the account owner can contribute an additional amount each year.
The aggregate contribution limit for each account (for all years) is currently $450,000. If an account balance reaches $450,000 new contributions into the ABLE account will not be accepted until the balance is reduced through one or more withdrawals.