Changes in the ABLE Savings program
Do you use the ABLE Savings program? Designed to allow people to save for qualified disability expenses without affecting eligibility for other programs such as SSI or Medicaid, this program will see some changes from the major tax changes implemented recently. Among eligible expenses are assistive technology and transportation, so it is important to keep in mind how these changes will affect your future decisions on mobility vehicles.
According to Disability Scoop, a major change to this program will be the treatment of 529 college saving plans, which were the model for the ABLE savings program. If a plan was started prior to knowledge of a disability of a child, then these funds can be rolled over to an ABLE savings account. Also, eligible individuals can now save earnings beyond the ABLE annual contribution threshold up to the federal poverty level, which is $12,060.
What do I need to know about the tax changes to the ABLE savings program?
Individuals are responsible for their own accounts and where the contributions fit within the new limits. Since going over the limit can affect the eligibility to receive other benefits, we strongly recommend contacting your state’s ABLE office. Tom Treacy, director of the Kansas ABLE office, attended the Kansas Truck Mobility Rodeo last September. You can email him at TOM@TREASURER.KS.GOV.
Since the new tax legislation will result in lower federal tax revenue, this may impact future entitlement programs, making the ABLE program very important.
You can reach the ABLE program for the State of Kansas via their website.