ABLE Act Information & Update
Click here for ABLE information from the National Resource Center
Click here for information on the Saver's Credit
UPDATE:
Of particular note is the manner of tracking/counting distributions for housing. The manner is very particular to the SSI rule concerning housing funds. While the general process is explained earlier in the document, the clarification/example in D3b is most pertinent to beneficiary's avoiding unintentionally having dollars from an ABLE distribution counted as a resource relative to SSI.
https://secure.ssa.gov/apps10/reference.nsf/links/03072018063315AM
[Note: SNAP and CMS guidance came out earlier. Both largely are confirmations of the protected status of ABLE funds (as well as distributions for qualified expenses) in relation to what counts as assets when determining eligibility. In short, the funds including distributions used as intended do not count as assets. Summaries and links are available at: http://www.ablenrc.org/news/new-usda-regulation-confirms-able-funds-protection and http://www.ablenrc.org/resources/center-medicare-and-medicaid-services-able-guidance, respectively.]
While Maine's process toward an ABLE program is still underway, States continue to establish programs and many, if not most, are available nationally (i.e. available to anyone in the country). Maine's program likely will launch in the next few months. The launch was anticipated to have occurred about this time this year, but it was requested by financial institutions (due to the nature of Maine's program)/deemed necessary to have legislation explicitly authorizing the State Treasurer to establish an ABLE program - earlier legislation only directed the Treasurer to research and report regarding establishment of a program. The legislation authorizing the Treasurer has passed out of Committee as emergency legislation. The following is the most recent (March 28) update.
LD 1881, “An Act To Authorize the Treasurer of State To Facilitate the Establishment of ABLE Accounts for Qualified Persons” has been unanimously voted ‘Ought to Pass as Amended” by those present on the Joint Standing Committee on Insurance and Financial Services. The committee amended the bill to make this an emergency bill. A bill normally becomes law 90 days after the end of the legislative session. The amendment will allow LD 1881 to become effective immediately upon the date the Governor signs the law after passage by two-thirds of the legislature.
It is expected that the Bill will move without hindrance or delay through the lawmaking process.
In case you have not heard, Maine's plan is for ABLE Accounts to be available through local financial institutions as a checking/savings account product, as one of any other financial product available at a financial institution - the product just has to be managed in keeping with the ABLE Act requirements. One bank with branches across the State already is intending to offer such a product. It is expected other banks/credit unions will follow suit. Also, it is hoped that savings incentives such as higher interest rate for designated savings will be incorporated into the products that financial institutions develop.
This "banking" option is as opposed to a separate entity/collaboration being established for the purpose of offering and managing the ABLE program. The State Treasurer will be responsible for posting information/arranging for a host site to furnish information about ABLE including information/resources, Maine's option, and other options available nationally. Those seeking an investment option (or a diversified option) will have to open an ABLE account with an out-of-state program that is a national program and that offers such option(s).
Relatedly, new amendments to the ABLE Act have:
Click here for information on the Saver's Credit
UPDATE:
Of particular note is the manner of tracking/counting distributions for housing. The manner is very particular to the SSI rule concerning housing funds. While the general process is explained earlier in the document, the clarification/example in D3b is most pertinent to beneficiary's avoiding unintentionally having dollars from an ABLE distribution counted as a resource relative to SSI.
https://secure.ssa.gov/apps10/reference.nsf/links/03072018063315AM
[Note: SNAP and CMS guidance came out earlier. Both largely are confirmations of the protected status of ABLE funds (as well as distributions for qualified expenses) in relation to what counts as assets when determining eligibility. In short, the funds including distributions used as intended do not count as assets. Summaries and links are available at: http://www.ablenrc.org/news/new-usda-regulation-confirms-able-funds-protection and http://www.ablenrc.org/resources/center-medicare-and-medicaid-services-able-guidance, respectively.]
While Maine's process toward an ABLE program is still underway, States continue to establish programs and many, if not most, are available nationally (i.e. available to anyone in the country). Maine's program likely will launch in the next few months. The launch was anticipated to have occurred about this time this year, but it was requested by financial institutions (due to the nature of Maine's program)/deemed necessary to have legislation explicitly authorizing the State Treasurer to establish an ABLE program - earlier legislation only directed the Treasurer to research and report regarding establishment of a program. The legislation authorizing the Treasurer has passed out of Committee as emergency legislation. The following is the most recent (March 28) update.
LD 1881, “An Act To Authorize the Treasurer of State To Facilitate the Establishment of ABLE Accounts for Qualified Persons” has been unanimously voted ‘Ought to Pass as Amended” by those present on the Joint Standing Committee on Insurance and Financial Services. The committee amended the bill to make this an emergency bill. A bill normally becomes law 90 days after the end of the legislative session. The amendment will allow LD 1881 to become effective immediately upon the date the Governor signs the law after passage by two-thirds of the legislature.
It is expected that the Bill will move without hindrance or delay through the lawmaking process.
In case you have not heard, Maine's plan is for ABLE Accounts to be available through local financial institutions as a checking/savings account product, as one of any other financial product available at a financial institution - the product just has to be managed in keeping with the ABLE Act requirements. One bank with branches across the State already is intending to offer such a product. It is expected other banks/credit unions will follow suit. Also, it is hoped that savings incentives such as higher interest rate for designated savings will be incorporated into the products that financial institutions develop.
This "banking" option is as opposed to a separate entity/collaboration being established for the purpose of offering and managing the ABLE program. The State Treasurer will be responsible for posting information/arranging for a host site to furnish information about ABLE including information/resources, Maine's option, and other options available nationally. Those seeking an investment option (or a diversified option) will have to open an ABLE account with an out-of-state program that is a national program and that offers such option(s).
Relatedly, new amendments to the ABLE Act have:
- Increased the annual contribution
- Allowed for a beneficiary with earnings from work to contribute from earnings over the typical contribution limit
- Incorporated the Tax Saver's credit
- Allowed for rollover of a 529 account without penalty