Author: Deborah Goodkin, Managing Director, Savings Plans, First National Bank of Omaha
With Halloween almost upon us, and tricks and treats a plenty, fall can be a spooky time of the year. However, when it comes to your finances – there is nothing to fear. To shed light on some of the most common Enable Alabama questions, we pulled together some tips that will alleviate your most haunting fears.
- Myth: Only the beneficiary can contribute money to their Enable Account.
Fact: Anyone can contribute to a beneficiary’s Enable Alabama account (family members, friends, the beneficiary themselves), so long as the total amount per tax year does not exceed the $15,000 limit. Should family and friends wish to donate, an easy way to do so is through an Enable gift certificate contribution.
- Myth: Only medical expenses count as qualifying disability expenses.
Fact: Under the Able Act, a qualified disability expense is an expense related to the blindness or disability of the designated beneficiary. This covers a wide range of categories that extend beyond medical expenses, including those such as education, housing, transportation, financial management and administrative services and basic living expenses. For the full list of qualifying expenses visit: https://secure.ssa.gov/poms.nsf/lnx/0501130740
- Myth: You are unable to save and keep your benefits.
Fact: The money you contribute to or withdraw from an Enable Alabama account is not considered when determining assistance from resource-based programs like SSI, SNAP and Medicaid. In addition, the earnings on contributions grow tax-free while invested and tax-free if drawn for qualified expenses.
Here at Enable Alabama, we hope you have a great Halloween, minus any financial spooks. Have any questions? Make sure to reach out to us on Facebook and we’d be happy to clarify any additional ‘trick’ questions.