(upbeat music) <v ->Hi, this is Janae Wheeler with AARP,</v> and I'm here to share useful information about ABLE Accounts. How to pay for future care is a common worry for caregivers and care recipients. For the millions of Americans who rely on government assistance, the prospect of saving for future care can raise concerns about impacting aid eligibility. If you're a person with a disability and ongoing care needs, or a caregiver of a loved one with a disability, an ABLE account might be a good solution. This type of savings account may help you cover future cost without impacting disability benefits. ABLE stands for Achieving a Better Life Experience, and is a federal program to create tax advantaged savings accounts for Americans with disabilities. State-Run ABLE programs allow you and caregivers to set aside money for future care without interfering with federal aid. All but a handful of states currently run ABLE programs. However, you can still enroll in some out-of-state ABLE programs even if you live in one of these states. Eligibility is determined by a few criteria. First, the account beneficiary must have a disability that begun by a specific age. Currently, the age of disability onset is 26. This will increase to 46 years old in January of 2026. The disability must be terminal or long term, more than 12 months, and must cause marked and severe functional limitations. You must also meet one of the following criteria. One, you're eligible for Supplemental Security Income, SSI, or Social Security Disability Insurance, SSDI, because of your disability. Or two, a doctor has diagnosed you with a disability, physical or mental. If you're a guardian of someone who might require additional assistance to manage an ABLE account, you can serve as an ABLE account support person to help provide day-to-day management of the account, including the contributions and withdrawals. <v ->Opening an account is very straightforward.</v> You can visit abletoday.org to find a complete list of all state ABLE programs. We always encourage you to research your home state program first. As many plans offer tax incentives for in-state residents, most states offer online enrollment, and depending on the program you choose, you may have the choice to receive a debit card connected to your ABLE account. Beneficiaries or their guardians can spend ABLE account funds on what are called disability qualified expenses. These are any costs related to maintaining, and improving the quality of life for a person with a disability. Covered expenses are broad, and can include education, transportation, medical care, support services and a range of other costs in involved in everyday care. Another key benefit is that disbursements are tax free. Anybody can contribute to a beneficiary's ABLE account even if they're an out-of-state resident or unrelated to the beneficiary. Although contributions are post-tax and not tax deductible at the federal level, some states will allow you to deduct them from your state income taxes. If you're worried about the impact of having an ABLE account on your benefits, know that it won't count against eligibility for programs like Medicaid. An ABLE account can't be considered a resource when determining eligibility for student financial aid. While ABLE accounts are designed to enable beneficiaries to save without interfering with benefits, there are some rules to keep in mind. To start, there's an annual cap of $17,000 a year, and ABLE programs also have balance limits that differ by state. If you receive Supplemental Security Income, or SSI, those benefits can be suspended if your total ABLE savings exceeds $100,000, but that's not permanent as they can be reinstated once the total balance comes below that $100,000 cap. It is important to note that a beneficiary can only have one ABLE account which can be transferred to a different state program if you choose. <v ->That's great information to have</v> as you determine if an ABLE account is right for you or your loved one. Now let's hear from Lily and her family about their experience with the ABLE Program. <v ->Having an ABLE account for our daughter</v> has been so helpful in so many ways. It's provided a way for her father and I to be able to pay for all the additional expenses of raising a child with a disability, and also saving and planning for her future as she will continue to need a lot of additional supports throughout her lifetime. And it's been a wonderful way for us to be able to involve our family and friends, and helping support her and her savings goals as well. <v ->Oh, I use my account for all sorts of things,</v> like getting sneakers, and getting school supplies, and eating ice cream with my friends, and I also, I always wanted to go to overnight camp and I've finally get a chance to do it, because I saved up on my ABLE account. <v ->You know, one of the other things, I think,</v> as parents that we've been able to see such benefits of having this ABLE account is watching the way it has helped Lily to grow in her independence, develop self-confidence and just also, you know, develop financial literacy skills. It's really challenging to teach young adults about finances and about saving, but also, you know, when you have an intellectual disability, it's very abstract. So having an ABLE account, and working with her on how to use it, she's starting to understand about saving some, spending some on those expenses regular monthly expenses, like her cell phone bill, and things like that, and just, she's developed a lot of skills from that, and just watching her grow in her independence, it's really a wonderful thing. I mean, we hope to be around for decades to come, but we wanna plan and prepare for the future, and having the ABLE account has been a way to get us started on that journey, and just to be able to have Lily be a part of that process, and it just has given us a lot of self-confidence, and we're really proud of her. <v ->Thanks for sharing your story.</v> Before we wrap this up, it's also important to note that even if you live in a state with an ABLE program, you can enroll in another state's program. Most states allow non-residents to enroll. How states implement ABLE programs varies from state to state. You can quickly compare state programs using the ABLE Today's State by State Tool found at abletoday.org/analyze-able-programs. How do state programs vary? You'll find that some states have minimal annual fees for keeping an account while others do not. Not to worry, programs with annual fees typically charge minimal amounts. Although disbursements are tax free, many ABLE programs place fees and restrictions on disbursements. Many states offer investment options, but the number of options will vary from state to state. If an ABLE account sounds right for you or a loved one, we encourage you to look further into what different states have to offer. You can find more information at ABLE Today and AARP's Family Caregiving website. You can also visit learn.aarp.org/caregiving For more resources and videos about caregiving, and a variety of other topics, including work and jobs, Medicare and Social Security. While you're there, be sure to use the Your Questions Answered Tool to browse Frequently Asked Questions. If you don't see what you're looking for, you can submit a question of your very own for an emailed response from a caregiving expert. Thanks for watching. (upbeat music)

ABLE accounts

tax advantaged savings accounts

Americans with disabilities

federal aid

disability qualified expenses