Many families of children with developmental differences set up ABLE accounts to support their children in adulthood. Money in these accounts can help your child pay for expenses such as housing, transportation, health care, education, and other expenses when they get older.
There are two significant advantages to ABLE Accounts:
- Public benefit eligibility: When your child becomes an adult, they must hold less than $2,000 in savings to be eligible for public benefits such as SSI. Money saved in an ABLE account does not affect eligibility for these benefits (your child can have up to $100,000 in an ABLE account and maintain eligibility).
- Tax benefits: Income earned by the account is not taxed and contributions to the account may be tax-deductible.
