Saving for the Future: ABLE Special Needs Trusts


Many parents set up funds to help provide for their child’s college education (529 Plans), but what happens if your child has special needs and is unlikely to need a college fund, but may need money to help them successfully transition into independent adulthood? Before 2014 there was no provision for that kind of tax-advantaged savings plan. However, in 2014 the ABLE (Achieving a Better Life Experience) Act was signed into law and in June of this year, the financial vehicles for those accounts finally became available in a few states.

The ABLE Act is now being tweaked by Congress to allow for higher savings limits and to allow families to roll over funds from a 529 account into an ABLE account. This is fantastic news for families.

Image Credit: © Creative Commons “Washington Capitol Hill” by Arend  is licensed under CC