Tax-Free ABLE Accounts

[llworking]

http://howardgleckman.com/2014/12/ta...-disabilities/

And for those who doubt...it passed last night.

http://money.cnn.com/2014/12/16/pf/t...html?hpt=hp_t2

[Taxing Matters]

http://howardgleckman.com/2014/12/ta...-disabilities/

And for those who doubt...it passed last night.

http://money.cnn.com/2014/12/16/pf/t...html?hpt=hp_t2

Enacted in a bill that also extended a number of other tax provisions that were set to expire at the end of the year had Congress not acted. Congress has a habit of doing this sort of thing right before the holidays. They don’t care that it cuts into the holiday time for tax lawyers and accountants who now have to scramble to see what Congress has done and then inform their clients about it.

[flyingron]

That was good but it's still not law until the president signs it, however he's almost certainly going to do so.
This bill had last I checked been stuck in the Senate Finance committee. I'm glad it got out even if it was done with one of the evil subterfuge methods.

[llworking]

Enacted in a bill that also extended a number of other tax provisions that were set to expire at the end of the year had Congress not acted. Congress has a habit of doing this sort of thing right before the holidays. They don’t care that it cuts into the holiday time for tax lawyers and accountants who now have to scramble to see what Congress has done and then inform their clients about it.

And of course it also means that the onset of the tax filing season will likely be once again, delayed.

[Mercy&Grace]

But, it only has those SSI receipents who became disabled before age 26. Why not all of the SSI receipents ?

[llworking]

But, it only has those SSI receipents who became disabled before age 26. Why not all of the SSI receipents ?

It was probably some compromise to get the bill passed.

[Mercy&Grace]

I've heard from others that is it directed at those who are children of the wealth. But, if someone has wealth parents, what are they doing living on $733 a month and Medicaid for medical care ?

[llworking]

I've heard from others that is it directed at those who are children of the wealth. But, if someone has wealth parents, what are they doing living on $733 a month and Medicaid for medical care ?

Its NOT directed at the children of the wealthy at all. Its directed mostly at people who have been disabled for pretty much all of their lives, or at least all of their adult lives. In other words, the people with the most profound disabilities.

[Mercy&Grace]

Thanks. Perhaps I should have said those with families who are better off than most families of SSI receipents.

In situations like Downs Syndrome and other similiar conditions it may allow some parents to provide for their children after they are gone. But, there are other methods that are usually used for this. It will be interesting to see how this is used in reality.

[llworking]

Thanks. Perhaps I should have said those with families who are better off than most families of SSI receipents.

In situations like Downs Syndrome and other similiar conditions it may allow some parents to provide for their children after they are gone. But, there are other methods that are usually used for this. It will be interesting to see how this is used in reality.

Yes, there are other methods, but usually those methods result in the SSI recipient losing their SSI for a period of time, or not being eligible for SSI at all. What I like about this is it allows money to be set aside to cover more major issues that may arise in their lifetimes, while still allowing their SSI benefits to continue. This will most benefit those of more modest means. Think about it? Right now an SSI recipient who receives a modest inheritance loses their benefits until that inheritance is used up. Now, parents can set aside some money annually in an ABLE account, to be used for the very purposes that "extra" money would normally be used to cover. I think its great. Sure, I would rather see it expanded to cover more people, but its still great.