However much help they need with daily living, people with disabilities become legal adults at the same age as everyone else. An 18-year-old with cerebral palsy, low vision, or intellectual disability has the same rights and responsibilities as a “typically abled” 18-year-old. The rights to keep personal information private, make their own decisions, and control their own money. And the responsibilities to advocate for themselves, find paying work, and apply for their own government benefits.
Sadly, there’s usually a gap between the actual cost of living and the maximum income/assets allowed for an individual receiving benefits. Which means that gifts from family and friends can actually leave a person poorer, if those gifts raise total assets above the “maximum” level.
Fortunately, there are options for saving additional funds that don’t count toward that maximum. One of these options: ABLE accounts.
What Is an ABLE Account?
ABLE stands for “Achieving a Better Life Experience,” which ABLE accounts accomplish by saving extra money for “qualified disability expenses” (quality-of-life expenses, such as housing and education). Anyone approved by the account holder (or their legal representative) can make deposits; so ABLE accounts are an easy and practical way to give money gifts without affecting the holder’s SSI/SSDI benefits.
(ABLE account rules are governed by states and overseen by the ABLE Act of 2014. The rules for Texas accounts are covered in detail at TexasABLE.org.)
A Good Time to Apply (or Re-Apply)
It may be that you already know about ABLE accounts, have even tried to set one up—and been disqualified because you or your family member were over 26 when a disability was acquired. If so, there’s good news for you: at the beginning of this year, the minimum age was raised to 46. The maximum annual contribution level has also been raised—from $19,000 to $20,000—and is even higher for employed individuals. You can read more about recent updates in the article “Big Changes Coming to ABLE Accounts Through 2027,” from True Link Financial. Enroll in Texas ABLE
You can also get more Texas-specific information on our sister website, TexasYouth2Adult. See its articles “Texas ABLE: A Savings Program for Texans with Disabilities” and “Achieving a Better Life Experience: ABLE Savings Accounts in Texas.”
TexasYouth2Adult is designed for disabled young adults (and their families) planning for independent living. While you’re there, check out our other financial articles. Then consider setting up your own account to access even more information and resources!