Achieving a Better Life Experience Act made SC ABLE Savings accounts possible in 2014 and officially launched in 2017. The SC Able savings accounts allow beneficiaries with qualifying disabilities to save in a tax-advantaged account. The funds can be used on eligible expenses, including higher education, as well as basic living and housing expenses.
ABLE account balances are not used in determining eligibility for means-tested government assistance programs, which makes them very beneficial for these individuals. The current law states that the onset for the qualifying disability had to occur at age 26 or younger in order to qualify for an ABLE account. The maximum annual contribution is set by the federal government at $17,000 for 2023.
The newly passed Secure Act 2.0 has increased the age at which the qualified disability was onset to 46 beginning in 2026. This is particularly helpful to veterans who may have been disabled after the age of 26 due to military service. We still hope to see the limits raised in the future but the age raise is a huge step in the right direction to better serve this community of individuals.
If you or a family member has any additional questions about how to set up an ABLE account, please give us a call.
