NJ ACHIEVING A BETTER LIFE EXPERIENCE (NJ ABLE)
Enacted December 19, 2014, Public Law 113–295, also known as The Stephen Beck, Jr., Achieving a Better Life Experience Act (ABLE Act), added Section 529A to the federal tax code.
With NJ ABLE, qualified individuals with disabilities can save for disability related expenses in tax advantaged savings accounts without losing eligibility for certain assistance programs like Supplemental Security Income (SSI) and Medicaid.
Allowable expenses are not limited to medical necessity and can include: education, housing, transportation, personal support services, and more. The funds in these accounts are intended to supplement not supplant, government benefits.
The individual with the disability is the account owner, but anyone can contribute to the account.
Interest income earned by the account is not taxed. Balances of $100,000 or less are excluded from the SSI resource limit. If the account holders’ balance exceeds $100,000, the SSI cash benefit will be suspended, but they will continue to be eligible for Medicaid, allowing them to continue receiving the important services needed to remain living independently.
NJ ABLE is administered through DDS in partnership with the contracted program manager, Ascensus College Savings Recordkeeping Services. DDS is available to host NJ ABLE presentations at your request.
To schedule an NJ ABLE presentation or to request brochures, please contact us at 1-888-285-3036.