Managing finances after a brain injury can be overwhelming. However, the Achieving a Better Life Experience (ABLE) Act, enacted in 2014, allows eligible individuals with disabilities and their families to save money for disability-related expenses in a special tax-exempt account – and still maintain means-based assistance programs such as Supplemental Security Income (SSI) and Medicaid. 

This important financial tool offers individuals with disabilities greater financial independence, flexibility, and security. Monies contributed to the account can be used to help cover expenses related to a wide range of personal needs. Note that the funds are intended to supplement, not replace, government benefits.

To be eligible, individuals must meet certain age and other requirements.

How the program works 
Individuals with disabilities or their authorized representatives can open an NJ ABLE account at no cost with a minimum deposit of only $25. Under this program, individuals can save up to $18,000 annually, with a savings capacity of up to $305,000.

Interest income earned by the account is not taxed. Balances of $100,000 or less are excluded from the SSI resource limit. If the account holder’s balance exceeds $100,000, their SSI cash benefit will be suspended. However, they will continue to be eligible for Medicaid. Once the balance falls below $100,000, the SSI cash benefit is automatically reinstated.

Getting started 
“There are, of course, a number of rules, regulations, and tax considerations to the program,” notes Cristine Chickadel, a representative with the New Jersey Division of Disability Services’ NJ ABLE Program. “However, for persons with disabilities and their families, an ABLE account is a powerful financial tool… an important resource that can help provide for the future.” 

To learn more about the ABLE program, how it works, and determine your eligibility, visit NJ.savewithable.com or call NJ ABLE at 888.609.8869.