Somewhat obscured by the Congress’ passing of the “Tax Increase Prevention Act of 2014,” better known as the tax extenders legislation, was another bill passed by Congress and expected to be signed by the President this week. The Achieving a Better Life Experience Act of 2014, establishes “ABLE” accounts for disabled persons. These accounts basically function similar to a Sec. 529 Qualified Tuition Plan (QTP).

Following the procedures for a QTP, ABLE accounts are established and maintained by the individual states. Persons residing in a state with no ABLE program may participate in a program maintained by a “contracting” state. An individual is limited to one account, and there can only be one beneficiary for each account. In order to qualify for an account, the individual must be entitled to benefits based on blindness or disability under the Social Read More