Manjit Singh photo

Manjit Singh CPA P.C.

CERTIFIED PUBLIC ACCOUNTANTS

Tax planners not just tax preparers®

 

2841 Hartland Road, Suite 307

Falls Church, VA 22043

 

Phone: 703-280-5656

Fax:     703-280-5666

           703-207-4502

 

Email: msingh@mscpa.us

Email: manny@manjitsinghcpa.com

Website: www.mscpa.us

October 2018

Special Needs, Special Savings

Special Needs Special Savings

While parents have a variety of tax-advantaged ways to save for their children’s educational needs, they haven’t always enjoyed the same tax benefits when saving for the future of their special-needs children. The Achieving a Better Life Experience Act (ABLE) of 2014 provides such an opportunity.


ABLE ACCOUNTS
States may offer ABLE accounts, designed to pay for disability-related expenses, to people who become disabled before age 26. Account earnings are tax-deferred, but you make contributions to an ABLE account after tax. Qualified withdrawals — including support services, assistive technology, employment training, transportation, education and housing — are tax-free.


You and other loved ones can each contribute up to $15,000 gift-tax-free, and the recent tax law changes now allow disabled persons to also contribute to their ABLE accounts subject to certain limits. The first $100,000 of ABLE account assets are not considered part of the account beneficiary’s assets, a positive feature for those depending on Medicaid eligibility.


TAX LAW CHANGES
A provision allowing ABLE account beneficiaries to qualify for the Saver’s Credit based on account contributions of up to $2,000 is new in 2018. Also new are limited rollovers to an ABLE account from 529 plans of the disabled beneficiary and loved ones.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.