Disability savings. What are you able to do with your ABLE account? Shield your income.

Jul 11, 18 Disability savings. What are you able to do with your ABLE account? Shield your income.

Shield your income in your ABLE account. What is shielding your income?

One of the many benefits of establishing a special needs account is income protection, or shielding your income. Our friends at Maryland Financial Advocates explained what it means to shield your income

Shielding income: Another practical use for an ABLE account is as a receptacle for child support, alimony, or even earned wages. Using an ABLE account for sources of income such as these shields them from being counted as a resource of the child. If more than $2,000 is accumulated by the child over time in an ABLE account, the eligibility for government programs is protected. In addition, an ABLE account is flexible enough that payments deposited into an account can easily be used to pay for many of the expenses a child may have.

How these flexible special needs accounts have evolved to include new features

Among the many new features established in May 2018, in Maryland State the ABLE to Work Act adds additional protections to disabled adult income

ABLE to Work Act

ABLE account holders who are employed may be eligible to contribute up to $12,060 above the annual contribution limit, currently $15,000. Additional contributions are limited to an amount equal to the lesser of the beneficiary’s annual gross income or $12,060 (the 2018 federal poverty wage for a one- person household). The additional contribution is not permitted if the Beneficiary or his/her employer contributes to the Beneficiary’s retirement plan, e.g. 401(k), 403(b), or 457(b) plan, within the taxable year.

Click here to read about all the new ABLE account features and benefits.


EVENTS PAGE: Finance webinars, meetings, and training.

What are you able to do with your ABLE disabilities savings account? Put your trust in it.

Let’s get to work!! Disabled adults in the workplace with  supported employment.

What are you able to do with your ABLE account? Pay household expenses.

Letter of Intent. An outline of care for your disabled child or disabled parent.


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External resources

Maryland Financial Advocates

Administration for Community Living

Pathfinders for Autism

Disability Scoop



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