The final spending bill for next year will have a provision in it that is a tax break for disabled individuals. It is similar to a 529 college savings plan that will be labeled as Tax-Free ABLE savings accounts. States will be permitted to set up these programs to enable families to set-aside funds with the intention of providing for the long-term independence, quality of life and health for their family members that qualify.
Individuals must have become blind or disabled before age 26; contributions up to $14,000 are allowed. There is a lifetime contribution cap that is the same as that for a 529 plan. In addition. The ABLE accounts would not affect individuals eligibility for Medicaid, and account balances of $100,000 or less won’t alter SSI benefits.