This month, January 2018, New Mexico became the latest state to launch an ABLE program, named ABLE New Mexico. ABLE New Mexico will be administered through a partnership with Ohio STABLE Accounts, which are backed by Intuition ABLE Solutions, LLC, and will be managed by Vanguard Group, Inc. and Fifth Third Bank. Note, while the New Mexico STABLE Accounts will only be available to eligible New Mexico residents with disabilities many other state ABLE programs are open to out-of-state residents.
In addition to New Mexico ABLE, there are 29 other states and DC, that have launched ABLE programs. Most of these ABLE programs are open for enrollment by eligible individuals nationwide. Please see http://www.ablenrc.org/ for details about these programs. Note, although Arizona has passed ABLE legislation, Arizona does not yet have its own ABLE program running.
ABLE allows qualified individuals with disabilities to save up to $15,000 a year in an ABLE account without jeopardizing their eligibility for federally-funded means tested benefits, such as Supplemental Security Income (SSI) and Medicaid. Funds in the ABLE account can be used for disability-related expenses that assist the beneficiary in increasing and/or maintaining his or her health, independence or quality of life. Now, with the launching of ABLE programs nationwide, individuals with disabilities and their families will be able to take a step to better secure their financial futures while maintaining eligibility for means-tested benefits, which often have asset limits of $2,000.00.
If you live in Arizona and want to know if an ABLE account is right for you or a disabled loved one, we are here to help. Special needs planning is not one size fits all; an ABLE account can be a valuable tool under the right circumstances. Call today to schedule a complimentary initial consultation.
-Stephanie Bivens, CELA, Esq.