In December 2014, the Achieving a Better Life Experience (ABLE) Act was signed into law authorizing individuals with disabilities to open tax-exempt savings accounts to save for disability-related expenses without impacting eligibility for resource-based benefits. The Act permits individuals with disabilities to save more than a total of $2,000 in assets (cash, savings, etc.) in their name in a qualified ABLE account.
In June 2015, the Alabama legislature passed the Alabama Act to provide a tax-free vehicle for saving for certain Alabamians who have disability-related expenses. It will assist individuals and families to save private funds to support individuals with disabilities to maintain health, independence, and quality of life. In November 2016, the State of Alabama contracted with the Nebraska State Treasurer to create the Enable Savings Plan Alabama. An ABLE plan provides individuals with disabilities a host of benefits to start saving for the future. For starters, you get to keep your public benefits! And earnings on the money in your account are free from federal and state tax.