{"id":6050,"date":"2021-10-05T13:08:36","date_gmt":"2021-10-05T17:08:36","guid":{"rendered":"https:\/\/collitonlaw.com\/?p=6050"},"modified":"2022-04-11T13:19:43","modified_gmt":"2022-04-11T17:19:43","slug":"pennsylvania-able-program-heralded-as-a-success","status":"publish","type":"post","link":"https:\/\/collitonlaw.com\/pennsylvania-able-program-heralded-as-a-success\/","title":{"rendered":"Pennsylvania ABLE Program Heralded As a Success"},"content":{"rendered":"

One of the problems affecting disabled persons in the Medicaid and Supplemental Security (SSI) systems has been extreme limitations on the amount they can carry in savings and still continue to qualify. A national program adopted by Pennsylvania in 2014 helps to deal with this to some extent particularly as it affects individuals who became disabled before the age of 26. The ABLE or Achieving a Better Life Experience Act is a federal law which allowed states to establish their own programs. Pennsylvania\u2019s has been heralded as a success although, from the beginning, the federal age limitation for onset of disability has been an issue. Annual contributions into accounts are limited but funds can accumulate over time up to $100,000.<\/p>\n

ABLE accounts are established under a savings program administered by the Pennsylvania Treasury and allow deposits up to $15,000 a year (the amount of the federal gift tax exclusion). Parents wanting to contribute funds to benefit their disabled children can do so as well as other individual contributors. For some who qualify, ABLE accounts could provide a less complicated although more limited alternative to the process of establishing and maintaining a supplemental needs trust.<\/p>\n

These accounts are especially relevant for those developmentally disabled individuals who want to be able to save but are, by definition, limited both in their earning potential and their limited income. Federal income and asset guidelines are especially strict for those who receive SSI due to their disability and limited income. This allows some additional flexibility.<\/p>\n

Anyone can contribute to an ABLE account but it must be established and owned by the disabled individual or a parent or fiduciary acting on behalf of the disabled individual if that person is a minor or unable to act. The maximum total contribution from all sources including the disabled individual now is $15,000 per year. It is an attempt to provide sustainable funding and options for those with disabilities through accounts to which both disabled individuals and others can contribute recognizing that disabled individuals who receive SSI and Medicaid would not generally own liquid assets in excess of $2,000 in their own name.<\/p>\n

ABLE is a new tool in a toolbox that currently includes third party, pooled and D4A supplemental needs trusts. Here is what you need to know.<\/p>\n

Benefits<\/p>\n