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Advisory council hears overview of ABLE Now savings accounts for people with disabilities
Summary
Department of Developmental Services staff presented ABLE Now, a federal tax-advantaged savings program for people with disabilities, explaining eligibility, contribution limits, how accounts affect Medicaid and SSI, and state payback rules; council members asked about waivers, beneficiaries and plan fees.
Yvonne Pentaha, Department of Developmental Services staff, gave advisory council members a basic briefing on ABLE Now, a federal program that lets people with disabilities save in tax-advantaged accounts without automatically jeopardizing public benefits.
ABLE Now is the federal Achieving a Better Life Experience Act program. "ABLE Now is the Achieving a Better Life Experience Act, which is a tax advantage savings program for individuals with disabilities," Pentaha told the council, and she said the accounts "allow individuals to save and invest money without it impacting their state and federal benefits." She described eligibility generally as for people whose disability began before age 26 (noting states vary), tax-free growth and tax-free withdrawals for qualified disability expenses, and a typical account balance threshold of $100,000 that can affect SSI eligibility.
Council members asked several operational and policy questions. A member asked whether states can waive the Medicaid payback (clawback) provision; Pentaha said the payback applies in Connecticut and that states differ in practice. Council members also asked whether an ABLE account can name a beneficiary and how leftover funds are handled; Pentaha said there is an option to list a beneficiary and that results can vary by state and case.
Pentaha reviewed contribution rules and plan differences: annual contribution limits recently cited at $19,000, an "ABLE to Work" higher amount for employed account owners, the ability for family members or trusts to contribute, and that plans vary by investment options, fees and whether a debit-card feature is offered. She advised checking each state's plan for fees and services and offered to share links and the National ABLE Clearinghouse as resources.
Council members and presenters cautioned that ABLE accounts affect assets (not income for Medicaid eligibility) and that details such as state payback enforcement, residency rules and transfer fees differ across plans. Members shared practical experience: one member recommended using an ABLE account as a conduit for spending rather than leaving very large balances because of potential state payback on death; another noted some states will not pursue small balances and some states limit accounts to residents.
Pentaha closed by offering to share her presentation materials and a web link with the council. The briefing prompted interest in a fuller session with ABLE plan representatives to address finer technical questions the council raised.
