An Able Account is a tax-advantaged savings account for persons with disabilities that was created by the Achieving a Better Life Experience (ABLE) Act of 2014.

The ABLE Act amended Section 529 of the Internal Revenue Code to allow for the creation of tax-advantaged ABLE accounts. The purpose of ABLE accounts is to enable persons with disabilities to save money for their own long-term care and other expenses, without jeopardizing their eligibility for certain need-based government benefits programs, such as Supplemental Security Income (SSI) and Medicaid.

Contributions to an ABLE account are treated as gifts, and therefore are not subject to federal income taxes. Additionally, earnings on money in the account grow tax-free. Withdrawals from the account are also tax-free, as long as they are used for “qualified disability expenses,” which include education, housing, transportation, employment training and support, Assistive technology, personal support services, health care expenses, financial management and administrative services, and other expenses approved by the U.S. Treasury Department.

ABL accounts are currently available in more than 30 states, with more states expected to offer ABLE accounts in the future. To open an ABLE account, you must be a resident of a state that offers ABLE accounts and you must have been diagnosed with a disability before your 26th birthday.

If you are the parent or legal guardian of a child with a disability, you may open an ABLE account on behalf of your child. You will be the account owner and responsible for managing the account, but the beneficiary of the account will be your child.

For more information about ABLE accounts, please visit the website of the National Association of State Treasurers (www.nast.org), which has a list of state-by-state information about ABLE programs.