Brain Injury Connector
Kelly Nelson - August is Maryland ABLE to Save Month
Kelly Nelson is the Outreach and Communications Manager for Maryland ABLE. She has worked in the field of disabilities for more than 30 years. She has served in many roles supporting people with disabilities and their families through advocacy, education, and connecting them to vital resources within their community.
She can be reached at knelson@marylandable.org.
ABLE to Save Month
August marks the nationally celebrated ABLE to Save Month. ABLE programs nationwide have changed the way people with disabilities and their families participate in the community, build financial wellness and plan for the future by empowering them to save and invest for the added expenses that come with having a disability without losing access to federal means-tested benefits. Learn more about how a Maryland ABLE can benefit you.
What does the ABLE (Achieving a Better Life Experience) Act do?
It gives states the opportunity to develop tax-advantaged savings programs for eligible people with disabilities. These saving programs provide the opportunity for people with disabilities to maintain eligibility for federal and state benefits while saving money to cover qualified disability expenses. For SSI purposes, the first $100,000 saved in ABLE account is disregarded for the purposes of the $2,000 asset limit.
Contributions to ABLE programs are capped by the federal ABLE Act to the federal gift tax exclusion, currently $15,000 per year.
Contributions are accepted by the Maryland ABLE program up to a maximum account value of $500,000, as of December 1, 2018.
ABLE to Work Act -
The ABLE to Work Act allows beneficiaries who are employed to contribute an amount equal to their current years gross income (up to a maximum of $12,760 in 2021) each year to their ABLE accounts in addition to the annual standard contribution limit of $15,000.
Keep in mind that, if the beneficiary or their employer is contributing to a retirement plan, including a defined contribution plan (e.g. 401(k)), annuity plan (403(b)), or deferred compensation plan (457(b)) this calendar year, the beneficiary is not eligible to make ABLE to Work contributions.
Information about Maryland's ABLE account program
Maryland ABLE Visa® Prepaid Card
Maryland ABLE account holders can access the funds in their ABLE account to pay for qualified disability expenses that support the beneficiary in his or her health, independence and quality of life. Account holders can access their funds through easy online account management or they can request the Maryland ABLE Visa® Prepaid Card for a low monthly fee. The prepaid card provides a convenient way to access funds for purchases made online or in the community. It also provides additional features such as setting up card alerts and customized spending for added protection and the ability to sort, filter, and tag ABLE purchases to easily record and track expenses.
Maryland ABLE Resource Network
https://www.ablenrc.org/state-review/maryland/
S.331 - ABLE Age Adjustment Act
https://www.congress.gov/bill/117th-congress/senate-bill/331?s=10&r=6
This bill increases from 26 to 46 the age threshold for tax-favored ABLE (Achieving a Better Life Experience) accounts.
Currently, individuals are eligible to save with ABLE accounts only if their qualifying disability was onset before age 26. Enactment of S.331, the ABLE Age Adjustment Act, would increase that to age 46, and would have a huge impact on millions of Americans — including thousands of people who experienced a traumatic brain injury after age 26.
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