Clancy & Associates, LTD.
  • Home
  • Practice Areas
    • Special Needs Planning & Trusts
    • Transition Planning
    • IEP / Education
    • Guardianship >
      • Adults with Special Needs
    • SSI Applications
    • Estate Planning
    • Resources
  • Our Team
    • Katie M. Clancy
    • Jennifer Y. Langtry
    • Alexandra Baig
    • Carrie Ganci-Clodi
    • What is a Special Needs Planning Attorney?
  • Events
  • Testimonials
  • Learning Library
  • Preparing For Your Consultation
  • Contact
    • Lisle
    • E-Newsletter Sign Up
Learning Library
Sign up for our e-newsletter

Consider Putting Recipients’ Pandemic Relief Payments in an ABLE Account

8/14/2020

0 Comments

 
Like millions of other Americans, recipients of Medicaid and Supplemental Security Income (SSI) have received or should soon receive a one-time $1,200 coronavirus relief payments from the federal government.  And, if Congress can come to an agreement, a second round of economic impact payments will be coming.  (If you haven’t received your payment and did not file a 2019 tax return, click here to access the IRS’s page for non-filers.)

Although this money does not immediately affect eligibility for means-tested programs like Medicaid and SSI, if the money is not spent within 12 months it will count as an asset and could affect eligibility.

One solution is to put the funds in an Achieving a Better Life Experience (ABLE) account, where it can remain without affecting eligibility for programs like Medicaid and SSI.  Authorized by Congress in 2014, ABLE accounts are a tax-advantaged way to put money aside for dependents with disabilities.  Funds in the accounts can be spent on a wide range of disability-related expenses without compromising eligibility for government benefits. Unlike a special needs trust, an ABLE account can be managed and controlled by the beneficiary. 

Not everyone with a disability can qualify for an ABLE account, however.  Eligibility is limited to people who developed their disability before age 26. Also, total contributions to ABLE accounts are limited to $15,000 per year, although beneficiaries who work can make ABLE contributions above the $15,000 annual cap from their own income up to the Federal Poverty Level. If the value of the account exceeds $100,000, any SSI income is suspended until the account dips below that limit.  These savings plans may be used for a broad array of products and services related to the eligible individual’s disability.
​
For help opening or investing in an ABLE account, please give us a call.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Archives

    November 2020
    October 2020
    August 2020
    April 2020
    March 2020
    July 2019
    November 2018
    October 2018
    June 2018
    February 2018

    Categories

    All
    ABLE Accounts
    COVID 19
    COVID-19
    Earned Income Tax Credit
    Letter Of Intent
    Social Security Disability Benefits
    Special Needs Planning
    Special Needs Trust
    Special Needs Trustee
    Supplemental Security Income

Home
Special Needs Planning

IEP / Education
Guardianship 
Testimonials
Contact
Licensed in Illinois & Wyoming
​Jackson Hole ​appointments available in Wyoming.
Picture
901 Warrenville Road, Ste. 201.
Lisle, Illinois 60532 

​773-929-9000  
Academy of Special Needs Planners
Copyright ©  Clancy & Associates, Ltd.
​All rights reserved.   |   Legal Disclaimer​
​This web site is designed for information only. 
The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
Designed by Buddingh & Associates, Inc. 
  • Home
  • Practice Areas
    • Special Needs Planning & Trusts
    • Transition Planning
    • IEP / Education
    • Guardianship >
      • Adults with Special Needs
    • SSI Applications
    • Estate Planning
    • Resources
  • Our Team
    • Katie M. Clancy
    • Jennifer Y. Langtry
    • Alexandra Baig
    • Carrie Ganci-Clodi
    • What is a Special Needs Planning Attorney?
  • Events
  • Testimonials
  • Learning Library
  • Preparing For Your Consultation
  • Contact
    • Lisle
    • E-Newsletter Sign Up