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Starting an ABLE Account
Hey! Has anyone opened an ABLE account and could provide some guidance on where to start? Can I open an account online? Do I have to work with Social Security since I received SSI and Medicaid?
I don’t know anything about ABLE accounts, so any input would be greatly appreciated as I’m hoping to open one soon!
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6 Replies
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Alyssa, I had never heard of an ABLE account either. But a quick search shows it to be a Tax Saving program that others, usually your parents can contribute to. They designate you as the beneficiary.
The challenge seems to be that the amount contributed goes against any savings programs (think 401, 403, etc) which they might otherwise be contributing to.
I don’t do tax stuff well, so I might be misunderstanding it, but that is my read on it.
Dennis
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I opened one last year. You do it all online and SS has absolutely no knowledge of the fact that ABLE accounts are even a thing. I spent a lot of time comparing all of the different states, and ended up choosing RI (which is probably slightly amusing to you).
Feel free to ask more or pm me< as I don’t always see things here.
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I recall looking into ABLE a year or two ago. I was concerned about the money should I pass away. Here’s what I found… CON: If there are funds remaining in an ABLE account upon the death of the account beneficiary, they must be first used to reimburse the government for Medicaid benefits received by the beneficiary, and then the remaining funds will have to pass through probate (an often onerous court process) in order to be transferred to the beneficiary’s heirs. If a special needs trust is used, there will be no probate and, in the case of a special needs trust established with funds that don’t belong to the beneficiary, there will be no Medicaid payback.
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There’s so much information out there that it’s a little overwhelming and, quite honestly, way over my head! Kip, do you have an SNT, if you don’t mind me asking?
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I do not. My folks and I looked into different trusts a few years back, but were so overwhelmed by the different variety, we dropped the ball. I wonder if I can designate a recipient to my SNT when I pass?
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For me, it was the fastest and most logical way to get my insurance back after SS gave me 10 months of back-payments in a lump sum, which put me $6500 over my limit and the only guidance they were giving me was to pay for my funeral expenses (done years ago) and “buy clothes”. I’m the person who loves thrift shops and hates wasting money, so I was NOT about to go on a $6500 shopping spree at the mall!!! Especially when I knew that my laptop would be needing to replace my laptop at some point, and that the van could use some work soon, but neither of those things were pressing, and I needed my insurance/pcas back ASAP!!!
I went on a search for a better answer, and was amazed when a friend of a friend came up with that suggestion!!!! It was exactly what I needed, and my problem was resolved within three days.
I understand why the take-back rule may be worrisome to some people, however, I only transfer money into my ABLE account from what I am given every month, so I don’t feel as if it was money that was really mine to begin with. When I die, I won’t need it, and I know the remaining funds won’t even put a dent in what was paid to keep me alive for all the years I had.For me, it is an ideal program that is helping me save up for when I do have some big bills to pay. I love that I no longer have to go get cash from the bank every month, and the fact that my money is able to fluctuate with the market is pretty cool.
Oh. And, yes, I still way too many clothes.
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