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Comprehensive Guide to ABLE Accounts: Tax-Favored Savings for Disabled Family Members

ARTICLE | July 15, 2024

Authored by Vasquez + Company


The Achieving a Better Life Experience (ABLE) Act of 2014 allows for the establishment of tax-favored accounts to cover the qualified expenses of family members with disabilities. These accounts offer significant tax advantages and are supported by state-run programs. The Tax Cuts and Jobs Act has further increased the annual contribution limits through 2025. Contributions to ABLE accounts are not deductible for federal income tax purposes, but distributions used for qualified disability expenses are tax-free. The article outlines the eligibility criteria, contribution limits, tax treatments, and the importance of proper documentation and financial planning.

For more information, read the full article here.

 


Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

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