Special Needs Planning: 5 Strategies for ABLE Accounts

Many families navigating life with a loved one who has special needs are so focused on immediate care and daily routines that they miss out on powerful financial opportunities that could make a huge difference over time. It’s tempting to put off special needs planning, or to assume that the basics, a government program here, a household budget there, will be enough. But the truth is, overlooking tools like the ABLE account can mean missing out on valuable tax advantages, flexible savings options, and long-term security for your family member.

Even if you’ve heard of trusts or have started the paperwork, the interplay between ABLE accounts and Special Needs Trusts often gets overlooked, leaving families exposed to unintended hurdles, from benefit eligibility issues to lost growth potential on savings. Recognizing how these accounts and trusts can work together is essential for putting your family on solid financial ground. It’s also easy to dismiss the details, like state tax credits or employer contributions to ABLE accounts, thinking they must be trivial, but these benefits can add up, year after year, to real and lasting value.

By understanding these strategies early, you can unlock the true potential of your planning, maximizing government support without sacrificing flexibility. And far from being “extras,” these tools, when coordinated, can provide the stability and options your loved one deserves.

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Key Insights 💡
• How ABLE accounts work.
• Expenses that qualify for ABLE account distributions.
• How to coordinate an ABLE account with a special needs trust.
• Understand and use state tax deductions or credits when contributing to ABLE accounts.
• Employer contributions and family gifting provide additional funding for ABLE accounts.
• Rolling over funds from a 529 plan to an ABLE account.

Highlights 🕒
00:00 Special Needs Planning: 5 Strategies for ABLE Accounts.
02:40 Which expenses can you use the ABLE Account for?
06:19 Maximizing your state tax deduction.
07:15 Savers credit for low to moderate income households.
08:16 Employers can contribute to employees’ ABLE accounts.
09:31 529 Plans Roll Over to ABLE.
10:58 Special Needs Trust: SNT vs. AMBT.

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Disclosures: This information is for general purposes only. This information is not intended to be a substitute for specific professional financial or tax advice, as individual circumstances vary. Please see a financial professional, CPA, and/or an attorney in regards to your own individual situation.