If you have a disability that began before you turned 26, you may be eligible for an ABLE Account.
The ABLE Act was approved in 2014 to help people with disabilities save money in a “tax-favored” account. Money saved in ABLE accounts can be used to pay for expenses that help to maintain your health, independence, and quality of life. Distributions are tax-free as long as they are used for qualified disability expenses.
To be eligible for an ABLE account in Washington State, you must:
- Have a disability or blindness that developed before the age of 26 that will last, or has lasted at least a year
- Be a U.S. citizen or legal resident living in the state of Washington AND
Confirm that you:
- Are eligible for SSI or SSDI because of a disability
- Experience blindness as determined by the Social Security Act
- Can get a signed diagnosis form from your doctor
All you need is a $25 minimum deposit to start off your account and a $10 minimum for any contribution or withdrawal after that.
Your ABLE account will be linked to your bank account. You can save money in your ABLE account for cash or for investment. When you’re ready to use your saved funds, simply transfer them from your ABLE account to your bank account, or a prepaid ABLE card, to use on eligible expenses.
You can save your money in an ABLE cash option and/or invest it into a stocks and bonds option. If you decide to invest it, you’ll need to put at least 10% of your monies into the investment option. The choice is up to you.
For more information, go to: https://www.washingtonstateable.com/