Page 8 - Lifestyles in Palm Beach Gardens - October '19

Page 8, Lifestyles in Palm Beach Gardens
Helping A Family Member Pay For Disability-Related

Expenses? An ABLE Account May Help

For families of individuals with disabilities, crafting a Disability Income benefits, otherwise a licensed doctor whose name is on the account.
financial plan requires a delicate balance. As a financial needs to certify that the individual meets Social Security’s Keep in mind, ABLE account earnings may be taxed
advisor, I’ve seen this balance play out firsthand. Families definition of having a functional limitation. if a distribution is greater than a qualified expense.
want to save responsibly, anticipating future expenses Q: How can money be added to the account? Additional penalties may apply if the funds are used for
including retirement, but need to be careful not to save A: A person with disabilities can only have one ABLE a nonqualified expense, including the account owner’s
more than the limits required for government assistance. account. However, anyone can contribute funds, including eligibility for government benefits.
ABLE accounts are designed to fill this need. Money the account holder, parents, extended family, friends, or A: Most states offer ABLE accounts. A qualified
saved and invested into one of these accounts can be even a special needs trust. Contributions must be made individual can set up an account in any state that offers an
withdrawn to cover current or future care – without with after-tax dollars and are not tax deductible on federal ABLE account, as long as the state accepts nonresidents
putting federal and state aid dollars at risk. income tax forms. Individuals may be allowed to deduct in their program. Features vary from state to state, and it
If you have a family member with disabilities and are ABLE account contributions on state tax forms (check may be worthwhile to shop around. For instance, you may
wondering if an ABLE account could help your family to see if your state allows this). have to look beyond your state’s borders for an account
maintain a solid financial foundation, read on for answers Q: How much can the account holder save and hold that offers a range of investment options or a debit card
to common questions about how they work. in an ABLE account? attached to the account. Fees will vary as well. Some states
Q: What does ABLE stand for? A: The annual contribution limit for an ABLE account charge an annual maintenance fee or charge fees based on
A: ABLE stands for “Achieving a Better Life is $15,000 in 2019 . The limit may be adjusted in the investment choices, while other state programs are free.
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Experience,” an acronym coined by Stephen Beck Jr., the future to keep up with inflation, so it’s important to check An ABLE account is one tool available to help families
advocate behind the act. As the parent of a child with special the rules each year. If the account holder is employed build savings for family members with disabilities. Talk to
needs, Beck understood the unique financial challenges and his or her employer does not offer a retirement plan, your financial advisor to explore ABLE accounts as well
families face when trying to save and plan for future additional money can be saved annually (this limit is an as other investment strategies that can help you create a
disability expenses. Until ABLE legislation was passed in additional $12,140 in 2019 ). more secure financial future for your family.
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2014, individuals with disabilities could not have more than The total savings in the account varies by state but 1 Public Law 113–295 The Stephen Beck Jr., Achieving
$2,000 in savings if they wanted to maintain eligibility for is generally capped around $300,000. That said, for a Better Life Experience Act (ABLE Act) – Enacted
government funding, such as Social Security and Medicaid. account holders to remain eligible for SSI benefits, their December 19, 2014
ABLE accounts are tax-advantaged savings vehicles that account balance must be below $100,000. If the savings John A. Rojas, CFP, is a private wealth advisor with
allow families to save and pay for both current and future exceed this amount, SSI benefits will be suspended Ameriprise Financial Services, Inc., a private wealth
expenses – and still qualify for government aid. Earnings until the account balance falls back under this threshold. advisory practice of Ameriprise Financial Services, Inc.
grow tax-deferred and funds spent on qualified expenses Importantly, Medicaid coverage is not impacted by the in Palm Beach Gardens, Fla. He specializes in fee-based
(more on what “qualified” means below) can be withdrawn amount of assets in the account. financial planning and asset management strategies and
on a tax-free basis. Q: Are there restrictions on how money in an ABLE has been in practice for 21 years. To contact him, please
Q: Who qualifies for an ABLE account? account is spent? call: (561) 383-3643, 11300 U.S. Highway 1, Suite 600,
A: The individual with disabilities is the account A: ABLE account funds can be used for Qualified Palm Beach Gardens, FL 33408, john.rojas@ampf.com.
owner and beneficiary of the ABLE account. ABLE Disability Expenses, which is any disability-related Investment advisory products and services are made
accounts can be funded on behalf of individuals of any expense that helps maintain the account holder’s health, available through Ameriprise Financial Services Inc., a
age, if the onset of their physical or mental disability independence or quality of life. This includes employment registered investment adviser.
occurred before age 26. Individuals must also either be training, medical and dental care, education (e.g. tuition Ameriprise Financial Inc. and its affiliates do not offer
receiving Social Security Income (SSI) or Social Security or a tutor), assistive technology, housing, personal support tax or legal advice. Consumers should consult with their
services, and transportation costs. Funds can also be tax advisor or attorney regarding their specific situation.
applied to legal fees, financial management services, and Ameriprise Financial Services, Inc., Member FINRA
funeral and burial expenses for the person with disabilities and SIPC.

OCTOBER 14

NEEDED:
NEEDED:

Mock Jurors
Mock Jurors
Earn a minimum $110
upon completion
Earn a minimum $110
• Spend 6-10 hrs on a given weekday
upon completion
night, weekday or weekend serving
as a juror in a mock trial to evaluate
Spend 6-10 hrs on a given
settlement of an actual court case.
weekday night, weekday or
• If you have a valid FL DL or State
I.D., a U.S. Citizen, and eligible to vote,
weekend serving as a juror
enroll with us on:
SIGNUPDIRECT.COM
in a mock trial to evaluate
(please fill out on-line form-completely for consideration)
settlement of an actual
• No computer access?
Call:1-800-544-5798.
court case. If you have a
(On-line sign up preferred).
valid FL DL or State I.D., a
*****Mock Trials will be held in West Palm Beach, FL.
U.S. Citizen, and eligible to

vote, enroll with us on:

SIGNUPDIRECT.COM

(please fill out on-line

form-completely for

consideration) or only if you

do not have access to a

computer

Call:1-800-544-5798.

(On-line sign up preferred).

*****Mock Trials will be

held in downtown Tampa.