NY ABLE Accounts
We have been celebrating National Elder Law Month throughout the entire month of May. Here is something you may not have known: Elder Law is not just for seniors. The field of elder law also encompasses planning for our disabled loved ones. In this week’s blog we will look at one of the tools in our arsenal for disability planning – The NY ABLE Plan.
What is the NY ABLE Plan?
Enacted in 2015, the New York Achieving a Better Life Experience (NY ABLE) program, was created to help New Yorkers with disabilities and their families meet costs. A NY ABLE account allows New York residents with disabilities to save, tax-free, for qualified disability-related expenses. These accounts are designed to help individuals with disabilities and their families save for costs like education, housing, transportation, and more without impacting Social Security, Medicaid, or other government benefits
How does someone qualify for a NY ABLE Account?
To qualify, a beneficiary must have a disability that was present before age 26, with one of the following:
– Classified as blind (as defined by the Social Security Act).
– Entitled to SSI or Social Security Disability Insurance (SSDI) because of the disability.
– Have a disability that is included on the Social Security Administration’s list of Compassionate Allowances Conditions.
– Have a written diagnosis from a physician of a physical or mental impairment which results in severe functional limitations that will last at least a year or can cause death. 
What are the benefits of a NY ABLE Account?
Contributions, earnings, and withdrawals are tax-free if used for qualified disability expenses. Savings don’t impact government benefits such as Social Security and Medicaid. You can choose different investment options, based on what is best for you.
What are Qualified Disability Expenses?
Money saved in a NY ABLE Account may be used for qualified disability expenses, which include: education, housing, transportation, employment training, assistive technology, personal support services, health, prevention and wellness, financial management and administrative services, legal fees, funeral and burial costs.
What is the Maximum Yearly Contribution? Is there an Account Maximum?
The maximum annual contribution to a NY ABLE account is $19,000. The maximum account total is $520,000.
How can I find out more?
Visit the NY ABLE PLAN website to learn more.
A Final Word
While a NY ABLE account is a good disability planning tool, some families may need to use a Supplemental Needs Trust (also known as a Special Needs Trust) to achieve their overall estate planning goal of providing for a disabled loved one. We can help with this.
We hope you enjoyed our celebration of National Elder Law Month! While other firms may highlight elder law during the month of May, for us, EVERY month is elder law month!
