Last week, the President signed into law the ABLE (Achieving a Better Life Experience) Act. Prior to the ABLE Act, those with disabilities were not able to accumulate more than $2,000 without losing government assistance. The new law increases the amount parents can save from $2,000 to $100,000. Like an educational 529, the new ABLE 529 will be administered by each state allowing an account to be set up for those with a documented disability that is onset before the age of 26. This is a huge boon to parents because they can start putting money away in this trust early on, so that by the time their child reaches the age of majority, they can have contributed $100,000. However, the 529-ABLE will function similar to a third-party special needs trust for a disabled beneficiary.
This is an important win for parents of children with disabilities. Our CEO, Charles Massimo, shares this victory with you. Charlie and Stella are parents to triplets, two of whom are on the autism spectrum. They said, “Our biggest fear is what will happen to our children when we are not around.” The ability to grow savings to provide for the disable child is crucial.
We are keeping a close watch on developments with ABLE so that we can help eligible parents take advantage of 529-ABLE accounts as soon as they are available.