2015 is a special year. For the first time ever, disabled persons and their families receive a new type of savings with the benefits of tax-free growth.
This new saving vehicle is called 529 ABLE plans, authorized by Congress in late 2014. It is similar to a 529 college plan, yet it allows people with disabilities to save as much as $100,000 and still apply for additional benefits, such as Medicaid and Supplemental Security Income. A disabled person or family member(s) can make one-time or regular contributions into the 529 ABLE plan. The plan can grow “tax-free” if used on qualified expenses. These expenses include education, housing, transportation, employment training, legal fees and funeral expenses.
Sounds similar to a 529 plan? It is! The main differences between the two plans are the “options.” For example, a family opening a 529 plan must select a plan offered by the state in which they live; however a family opening a 529-ABLE plan can select a plan offered by any state. Didn’t we mention 2015 was going to be a special year?!
In order to qualify for the 529-ABLE plan, a certification is required by a doctor, and primarily for those who became disable before reaching the age of 26.
At Wild Felice and Partners, we have provided special needs planning to hundreds of South Florida families. We are excited to help families with this new plan as well. If you have any questions regarding the 529 ABLE or special needs planning, please contact us for a free consultation.
Our phone number is 954-944-2855 and website www.wfplaw.com
Wild Felice and Partners provide estate planning and asset protection in Fort Lauderdale, Plantation, Weston and Miami.