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What is an ABLE account and how can it help you save for your future?

An ABLE account, or Achieving a Better Life Experience account, is a tax-advantaged savings account designed for individuals with disabilities to save and invest money without losing eligibility for certain public benefits like Medicaid or Supplemental Security Income (SSI). These accounts were established under the ABLE Act of 2014 to help cover qualified disability expenses such as education, housing, transportation, health care, and more. Contributions to an ABLE account can be made by anyone, but there are annual contribution limits, and the total assets in the account must not exceed $100,000 for SSI eligibility. The funds grow tax-free, and withdrawals for qualified expenses are also tax-free. However, if the account balance exceeds $100,000, SSI benefits might be suspended, although Medicaid benefits would continue. ABLE accounts provide a way for people with disabilities to have more financial independence and security.

Read the Full CNBC Article at:
[ https://www.cnbc.com/select/what-is-an-able-account/ ]