The ABLE Act is a piece of legislation, recently passed by Congress and awaiting approval by President Obama, that will allow individuals with disabilities to set up tax free savings accounts.
Historically, being eligible for social service programs such as Social Security, Medicaid, Medicare, and other services has meant that persons with disabilities have been mired in poverty because they were not allowed to have more than $2000 in savings. With this legislation, individuals will be able to deposit a maximum of $14,000 per year to use for education, housing, transportation, medical care, and other expenses.
The main limitations of this bill are that each person can only have one ABLE account, and the person must have acquired the disability before the age of 26.
For more information about the ABLE Act, please visit: http://www.realeconomicimpact.org/News.aspx?id=460