An article inDisability Scoopby Michelle Diament about how President Obama signed the ABLE Act into law in late December. This will allow people with disabilities to open special accounts where we can save up to $100,000 without losing our benefits. This article explains that each state will need to come up with regulations.. The hope is that by the end of 2015 every state will have it setup.

Obama Signs ABLE Act

By Michelle Diament

With his signature, the president has paved the way for people with disabilities to open tax-free savings accounts where they can amass more than $2,000 without losing government benefits.

President Barack Obama signed the Achieving a Better Life Experience, or ABLE, Act Friday before leaving Washington for the holidays.

The new law will allow people with disabilities to open special accounts where they can save up to $100,000 without risking eligibility for Social Security and other government programs. Whats more, individuals can keep their Medicaid coverage no matter how much money is accrued in an ABLE account.

Modeled after 529 college savings plans, interest earned on savings will be tax-free. Funds accrued in the accounts can be used to pay for education, health care, transportation, housing and other expenses.

To be eligible, individuals must have a condition that occurred before age 26 and each person may only open one ABLE account. Under current gift-tax limitations, as much as $14,000 could be deposited annually.

People with disabilities may be able to start opening ABLE accounts as soon as 2015. However, some hurdles remain. While the new law alters federal rules to allow for ABLE accounts, each state must now put regulations in place much as they have done for other types of 529 plans so that financial institutions can make the new offering available.

We cant mandate that a state will create a 529, but given the lobby that weve seen, I think by the end of next year, I think well see this in every state, Sen. Richard Burr, R-N.C., one of the measures chief sponsors, said on a recent call with reporters.

The laws name was amended in recent weeks to honor Stephen Beck, Jr., a longtime proponent of the bill who died unexpectedly in early December.

Source:http://www.disabilityscoop.com/2014/12/22/obama-signs-able-act/19935/