Who is eligible to be an ABLE account beneficiary?
To be eligible, individuals must meet two requirements:
- 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)
OR, 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).
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:
- Employment training and support
- Assistive technology and personal support services
- Health, prevention, and wellness
- Financial management and administrative 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).