ABLE Act Allows for Tax-Free Special Needs Accounts

February 13, 2015

Center for Independent Futures resource partner Oak Wealth Advisors, LLC, recently shared information about an important new law that could impact the financial futures of individuals with disabilities. The Stephen Beck Jr. Achieving a Better Life Experience Act, known as the ABLE Act, was signed into law in December 2014.

According to the Oak Wealth Advisors update, "The ABLE Act authorizes the creation of a new type of tax-free savings account that uniquely benefits the special needs community." If used according to the Act's restrictions and guidelines and applied to approved special needs goods and services, the account's growth and withdrawals will be tax-free.

"The ABLE Act represents progress in Washington, D.C. for the special needs community and provides another planning tool for families working to provide the best futures for their loved ones with special needs," the update states.

Because the accounts will be administered by each state, the timing for their availability will vary from state to state. ABLE accounts will have specific limits for yearly contributions and total accumulation, along with a limit of one ABLE count per individual. For a list of the basic guidelines, as well as more information about the accounts, read the full update from Oak Wealth Advisors at this link. To learn more about Oak Wealth Advisors and the special needs planning resources they offer, visit their website at www.oakwealth.com.

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