When something catastrophic happens to you or a loved one, it can be easy to forget the other crucial aspects of your life. We’re so busy figuring out how to adjust and continue our lives with the injury that we often don’t think about how it will affect other areas. Unfortunately, health insurance coverage is one of the most important aspects one must figure out – which is where the ABLE Act comes in to play. In an effort to not bore you with legal lingo, I’ll be brief in why the ABLE Act and current legislation impacts your life.
So you have all these living expense, medical bills, and caregiver invoices – what do you do? With the expectation for care to continue you have to start saving. But until recently – having a substantial amount of assets in your bank account left you absent of government assistance. Until the ABLE ACT: Achieving Better Life Experience. This new disability-friendly legislation allows families to live a more fulfilled and established lifestyle by opening a tax-deductible savings account.
There are millions of individuals that depend on a wide variety of government programs for assistance. But eligibility for most of these programs limits savings to only being $2000 before you get cut off. The ABLE Act allows for persons with disabilities to establish separate accounts where they can store money for general life expenses such as medical, dental, education, special training, assistive technology, housing, transport, and much more. It operates much like a flexible savings account that most households have for college tuition or retirement.
The new act was signed by both the House of Representatives and President Obama late this past December and applications will begin in the later part of 2015. In order to prove eligibility, you must project costs/needs and savings goals. Now that the act has passed, the department of Treasury will begin to develop regulations that will guide states into regulating their own ABLE program.
If you’re interested in finding out more, click here.