Delaware.gov logo

Kenneth A. Simpler
State Treasurer


ABLE Program



Delaware ABLE Program LogoThe Delaware Achieving a Better Life Experience (ABLE) Act allows individuals with disabilities to save and invest in a 529a account for qualified medical expenses. On December 19, 2014, the ABLE Act was signed into federal law by President Barack Obama. In June of 2015, Delaware’s ABLE Act or “Kayla’s Bill” was signed into Delaware law.Up to $14,000 can be saved per year without endangering benefits from federal means-tested programs.

These plans allow employees to set aside payroll-deducted contributions on a pre or after-tax basis.  Pre or after-tax contributions may be invested in fixed and variable accounts under this plan

 

Who is eligible to be an ABLE account beneficiary? 

To be eligible, individuals can provide a “disability certification”, including a physician’s diagnosis, that the individual meets criteria to be further established in regulations (essentially equal to Social Security level of disability), OR meet the following two requirements:

  1. Age requirement: onset of disability before age 26
  2. Severity of disability: meets the disability requirements for Supplemental Security Income (SSI) or Social Security disability benefits (Title XVI or Title II of the Social Security Act)

What may funds from an ABLE account be used for?

Distributions from an ABLE account may be made for qualified disability expenses, related to the individual’s disability or blindness and made for his/her benefit, including:

  • Education
  • Housing
  • Transportation
  • Employment training and support
  • Assistive technology and personal support services
  • Legal Expenses for oversight and monitoring
  • Basic Living Expenses (NPRM)
  • Funeral and burial expenses
  • Any other expenses to enhance quality of life

Expenditures for non-qualified expenditures will be penalized (tax and potential SSI penalties).

 

 

 


Related Topics:  , , ,


+