People in Michigan and across the country are often worried about how the amount of money they might have in the bank or in various savings accounts might affect their ability to receive the full amount in disability benefits. The Social Security Administration has certain rules in place for people who are receiving Social Security disability benefits. In the past, those rules have precluded people from saving money out of fear of having their benefits reduced or rescinded. A new law is in place to prevent that from happening.
This new law recently was signed by the president. It will allow people who are disabled to open savings accounts without having to face tax implications or lose their benefits. This act, known as the Achieving a Better Life Experience (ABLE) Act, will let people save as much as $100,000 and not have to worry about it negatively influencing their disability claims. In addition, people will be able to keep receiving their Medicaid benefits, regardless as to how much money they have accrued in their ABLE account. In order for a person to be eligible for this program, his or her disabling condition must have come about before he or she turned 26. Every person can open only a single ABLE account. A maximum of $14,000 can be deposited on a yearly basis. Those who have disabilities can begin opening an account as early as 2015.
For people with mental or physical problems that prevent them from being able to work and support themselves or require a family to care for someone with these issues, disability benefits are often the only way they can make ends meet. Regardless of the kind of benefits a person seeks and the reason they’re necessary, there are always legal issues that may result. It’s important to know how to properly file for disability benefits with the Social Security Administration, appeal a denied claim and navigate the myriad of issues that can arise.
With the ABLE Act in place, disability recipients now have a new option to save money without having their benefits placed in jeopardy. The law is still in its infancy and the individual states must decide how they’re going to implement it, but its passage will help those who are receiving benefits. To fully understand this new law as it moves forward, a qualified legal professional experienced in disability claims can help.
Source: disabilityscoop, “Obama Signs ABLE Act,” Michelle Diament, Dec. 22, 2014