ABLE Account Update

September 7, 2016

In addition to Florida, three states have established ABLE account programs:  Nebraska, Tennessee and Ohio.  However, many states are in the process of establishing similar programs which will certain people with disabilities additional options for savings.  Ohio’s program was the first to open in June 2016.

The four existing programs vary considerable:  they have different account and asset-based fees, investment options, policies and consequences for state taxes.  People considering ABLE accounts will need to research the various plans to see which one will be best.  Individuals cannot have multiple ABLE accounts and some may choose to wait and open accounts until their home states begin offering plans.

Potential owners of ABLE accounts may consider whether the account is an acceptable substitute for a special needs trust for them or whether they would like to have both a trust and an ABLE account.

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