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Presenter outlines ABLEnow accounts: eligibility, tax benefits and state payback rules
Summary
A guest presenter described ABLEnow accounts (Achieving a Better Life Experience Act), explaining who qualifies, tax-free growth and withdrawals for qualified disability expenses, the $100,000 SSI threshold and state variation on Medicaid payback policies. Resources and plan links were offered to members.
Yvonne Pentaha, a guest presenter, told the council that "ABLE now is the Achieving a Better Life Experience Act, which is a tax advantage savings program for individuals with disabilities." She said the accounts let "individuals save and invest money without it impacting their state and federal benefits."
Those accounts, the presenter said, are available to people whose disability began before age 26 under current federal rules and to those who meet Social Security disability criteria, though some states are considering or have enacted higher age limits. The chair noted attendees had been told the eligibility age will increase to 46 starting Jan. 1, 2026.
Yvonne walked members through the main features: earnings in an ABLEnow account grow tax free, and withdrawals are tax-free when used for qualified disability expenses such as education, housing, health care and transportation. She noted annual contribution limits and said plan rules vary: "the contribution for the account, you can contribute up to $19,000," and employed account-holders can use an "ABLE to Work" provision that permits higher contributions tied to employment.
On interactions with public benefits, she emphasized state-by-state differences. "It has a limit up to a $100,000 anything above that will be of course, considered a resource," she said, explaining that balances above that threshold can affect SSI (suspension rather than permanent loss in some cases). She added that ABLEnow balances do not affect Medicaid eligibility in the same way, but that payback (the state recovering Medicaid costs after account-holder death) is enforced by some states; "in Connecticut the payback provision applies," she said, while other states may choose not to pursue small balances. Council members discussed waivers and examples where states limit or decline recovery for lower balances.
Members asked for plan-specific details and where to find allowable-expense lists; Yvonne offered to send links and materials and pointed attendees to the ABLEnow web resources and a national ABLE clearinghouse. She also gave practical examples of how families use accounts for everyday expenses and to empower account holders with debit cards in plans that offer them.
The presentation closed with the presenter offering contact information and meeting members asked that the slides or handout be shared with the group for follow-up.
