ABLE Act accounts can be a terrific resource for individuals with a disability. The rules are easy to figure out; what we do here is to give more information about how they actually work in practice.
Though the ABLE Act may have originally been envisioned as creating an alternative to special needs trusts, that's not how things have turned out. In fact, ABLE Act accounts provide extra flexibility to existing special needs trusts. We explain how the two concepts can work together.
And, of course, an ABLE Act account can stand on its own, even where there is no special needs trust. But contribution limits and a requirement of paying back the state Medicaid program at the beneficiary's death make them less attractive than they might otherwise be as a standalone option.