ABLE Accounts

Another type of municipal fund security is the ABLE account. Created by the Achieving a Better Life Experience (ABLE) Act of 2014, an ABLE account allows people with disabilities to save money in a tax-deferred account administered by the various states. Prior to the ABLE Act, disabled persons who earned more than $70/month or had assets in excess of $2,000 would forfeit their eligibility for government benefits such as Medicaid. The ABLE Act allows blind or disabled persons to accumulate savings without impacting their eligibility for other public benefits.

To open an ABLE account, an individual must have become disabled before the age of 26. The person must also be eligible for or receiving Supplemental Security Income (SSI), Social Security Disability Income (SSDI) or Childhood Disability Benefits (CDB), or