SAN JOSE, Calif.–(BUSINESS WIRE)–

Individuals with disabilities or those who know someone with disabilities can benefit from learning about ABLE accounts. These savings and investment accounts offer tax benefits for people with disabilities, allowing them to accumulate wealth without risking their means-tested benefits like Supplemental Security Income (SSI) and Medicaid. ABLE accounts were established under the Achieving a Better Life Experience (ABLE) Act of 2014, and function similarly to 529 college savings plans.

Any person, including parents, family members, and friends, can contribute to an ABLE account on behalf of the account owner or beneficiary, who can only have one ABLE account at any given time. These accounts are useful for individuals who wish to save without losing access to means-tested benefits.

ABLE accounts offer key advantages unavailable with other savings, investment, and tax-advantaged accounts. In order to qualify for an ABLE account, the beneficiary must meet two specific criteria.

ABLE accounts are state-sponsored, meaning states typically provide websites where applicants can open and manage accounts. While not required to use one’s state’s program, doing so may lead to applicable state income tax deductions. Contributing to an out-of-state program is possible, as certain states permit non-residents to participate and some states do not offer ABLE accounts.

The ABLE National Resource Center provides a comparison tool for assessing up to three state programs simultaneously. This tool offers an understanding of potential tax implications and details regarding each state’s investment options, fees, and features.

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