In 2014, Congress created a type of savings account for individuals with disabilities, providing certain tax and other benefits, through the Achieving a Better Life Experience (ABLE) Act. These accounts look like retirement or college savings plans, but ABLE account beneficiaries are allowed a wide range of uses for both short and longer-term expenses related to their disability.
ABLE accounts are now offered by many states, individually or in partnerships. Wisconsin does not offer ABLE at this time, but residents may open an ABLE account with another state if they permit it. The same federal rules apply to all ABLE plans. Eligibility and tax benefits vary from state to state. Consult with professional counsel to see how this may affect your situation.
To learn more, read these Frequently Asked Questions.
For additional information, contact DFI's Financial Capability Officer Linda Lambert at (608) 640-6373 or email Linda.Lambert@dfi.wisconsin.gov.