In 2015, the ABLE Act was passed to give people with disabilities the ability to supplement benefits such as Supplemental Security Income (SSI), Supplemental Security Disability Income (SSDI), and Medicaid by placing money into an ABLE account in order to maintain his or her lifestyle. More importantly, funds in an ABLE account do not affect Medicaid, SSI, SSDI, or other government benefits.
An ABLE account may be established by the disabled individual themselves or by a parent, guardian, or agent of the disabled individual. Once an ABLE account is created, the disabled person will be the beneficiary of all funds in the account and it may be funded by anyone who wishes to contribute.
In order to be eligible for an ABLE account a person must:
- Be the recipient of SSI or SSDI; and
- Been disabled prior to 26 year of age; or
- He or she is blind;
- Has a disability listed in the Social Security Administration’s List of Compassionate Allowances Conditions; and
- Is clinically diagnosed with a mental or physical impairment that causes severe limitations.
As of January 2018, the maximum annual contribution is $15,000 with a maximum amount of $100,000. So long as the disabled individual is taking qualifying distributions for disability expenses, such as room and boarding, continuing education, healthcare or medical supplies, and transportation, among others.
If you are looking to establish an ABLE account, it is important to speak with an experienced professional who may assist you with this complex process and ensure that your resources are protected. For those seeking assistance with Medicaid applications, P&P Medicaid can handle the entire application and document acquiring process and appear on the applicant’s behalf for all interviews with Medicaid. For more information about the Medicaid application process or any of our other services or to schedule a consultation, contact our Long Island Medicaid application professionals at (516) 541-4770 or fill out our contact form.