Here’s what an ABLE account is and how it works

Back in 2014, the federal government did a great thing for individuals with disabilities.

It created what’s called an ABLE account -- “achieving a better life experience”. They are tax savings accounts that act like a 529 education plan.

It shelters assets from federal and state benefits like Social Security Disability and Medicaid.

You can save up to $100,000 in these accounts, invest after-tax dollars in market-backed investments, change your mix twice a year and you can choose to be aggressive or risk averse as you’d like.

You can use the savings to pay for things like housing, education and transportation.

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