A new Tennessee program is now available to help people with qualified disabilities and their families or legal representatives save, invest and earn money tax-free to fund allowable expenses such as housing and health needs.
Further from the Times-Free Press:
State Treasurer David Lillard said Tennessee is among the first states to offer an Achieving A Better Life Experience program.
The ABLE Tennessee program, administered through the Tennessee Department of Treasury, is designed to help people with intellectual and physical disabilities save with no impact on federal means-tested benefits so long as the 401k-style investment accounts are less than $100,000.
It is expected to help people and families with problems in areas ranging from Down syndrome to military veterans left physically devastated by war-related injuries.
To qualify, officials said, the disability must have been present before someone’s 26th birthday.
Moreover, individuals must be eligible for either federal Supplemental Security Income or Social Security Disability Insurance benefits based on blindness or disability. Or, they can join by having a qualified physician provide a disability diagnosis.
The accounts can be opened by family members or other legal representatives and accept investment money not just from them but other relatives, including grandparents, and friends, officials say.
“Families are so ready to open these accounts,” Lillard said last week at a news conference rolling out the program, made allowable under recent changes to federal tax law. “The Tennessee Treasury team has put together a very high-quality savings program.”