ABLE accounts are tax-free savings accounts, a bit like 501c College Funds, that allow people with disabilities to save up to $100,000 without losing government benefits. These accounts were created last year under the Achieving a Better Life Experience Act, and the hope was that they'd relieve some of the financial strain many people with special needs face. However, disability advocates and state officials were concerned that strict IRS restrictions would hinder their effectiveness.
Luckily, the IRS lifted some of its regulations last week, and made three important changes to ABLE account rules.
According to the IRS guidance:
These may seem like small changes, but they will allow state officials to administer programs more easily and they will allow account holders to have less hurdles to overcome when saving money or using it for expenses.