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.