What You Need To Know About The ABLE Act and Tax Free Savings Accounts

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Under the ABLE Act, families would be able to set aside funds into a tax-free savings account.  The funds could be withdrawn to cover costs associated with health care, employment, housing, transportation, and education.  The funds would supplement but not replace benefits provided by Medicaid, Social Security, and private insurance and would not jeopardize a child’s eligibility for federal benefit programs.

U.S. Rep. Ander Crenshaw of Florida is sponsoring the Achieving a Better Life Experience Act, also known as the ABLE Act, that will help people caring for individuals with special needs.

The accounts would allow families to provide for extra costs associated with every day activities and community inclusion.  The accounts would be available in any state, and have the same tax structure of traditional college savings accounts.