Latest news with #AchievingaBetterLifeExperience
Yahoo
29-03-2025
- Business
- Yahoo
Why 97% of SSI-Eligible People Miss Out on Tax Savings
In 2014, Congress passed the Achieving a Better Life Experience (ABLE) Act, creating tax-advantaged savings accounts for people with disabilities. Yet, according to some experts, only 3% of eligible individuals use them. Read More: Find Out: While contributions aren't tax-deductible, earnings remain untaxed if used for qualified disability expenses like medical care, education and job training. GOBankingRates talked to Mark Raymond Jr., quadriplegic and the national outreach lead for ABLE, about why so few people are using these accounts and how they can make a world of difference for those who tap into them. One big question: Why are 97% of SSI-eligible people missing out on tax savings? According to Raymond, a primary reason is a significant lack of awareness about ABLE accounts. 'These tax-advantaged savings vehicles were created specifically to help individuals with disabilities save for the future without jeopardizing access to critical means-tested benefits like SSI [Supplemental Security Income] and Medicaid,' Raymond said. 'Despite their value, less than 3% of the estimated 8 million eligible individuals have opened an ABLE account.' Raymond added that the National Association of State Treasurer's ABLE today program is working to change that by meeting people where they are – in their communities, online and at events — to share accessible, easy-to-understand information and increase adoption. Discover Next: The ABLE Act amended Section 529 of the U.S. Tax Code to create tax-free savings accounts for individuals with disabilities. These accounts allow people to save for qualified disability-related expenses, such as housing, education, transportation and healthcare, while protecting eligibility for benefits like SSI and Medicaid. 'ABLE accounts are one of the most powerful and underutilized tools available to individuals with disabilities today,' Raymond said. 'They not only offer tax advantages but also provide a pathway to greater independence, financial security and long-term planning, especially for those who rely on public benefits.' More From GoBankingRates6 Reasons Your Tax Refund Will Be Higher in 2025 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth 6 Big Shakeups Coming to Social Security in 2025 This article originally appeared on Why 97% of SSI-Eligible People Miss Out on Tax Savings Sign in to access your portfolio
Yahoo
05-02-2025
- Health
- Yahoo
Idaho House committee advances ABLE account proposal for adults with disabilities
The rotunda at the Idaho State Capitol building in Boise as seen on March 23, 2021. (Otto Kitsinger for Idaho Capital Sun) This story was first published by Idaho Reports on Feb. 5, 2025. The Idaho House Health and Welfare Committee moved forward a bill to allow disabled people to establish ABLE accounts. 'ABLE,' an acronym for Achieving a Better Life Experience, allows people with disabilities who collect Social Security Income to save money for future qualifying needs, such as transportation, housing or medical expenses. Currently, Idahoans are in jeopardy of no longer qualifying for Social Security Income if they have more than $2,000 in their accounts, which discourages them from saving for expenses like car repair, or medical care that isn't covered by insurance. The money in ABLE accounts doesn't count against the $2,000. Only people whose disability began before the age of 26 are eligible for ABLE accounts. Idaho, South Dakota and North Dakota are the only three states in the country that currently do not have ABLE accounts, according to state Treasurer Julie Ellsworth, who sponsored the bill on Wednesday. Hailey mother Brittany Shipley testified in favor of the bill, saying ABLE accounts could help her children with disabilities live independently one day. 'The current system forces individuals to navigate a paradox,' Shipley said. 'If they save or earn too much money, they lose access to critical services like Medicaid or SSI. This means the risk losing critical services they rely on to prevent institutionalization – a choice no one should have to make. This is where ABLE accounts make a profound difference.' The bill has no additional cost to the state, and will establish an Idaho ABLE Account Advisory Council to advise the Idaho State treasurer and the executive director of the Idaho State Independent Living Council regarding policies and action that enhance the outreach, marketing, and education of the Idaho ABLE Account Program. The only 'no' vote came from Rep. Lucas Cayler, R-Caldwell, who said he voted against it in the spirit of not expanding government. The bill must now head to the full House of Representatives for a vote. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
