1. Briefly explain the ABLE Act and why it is so important? The ABLE Act allows people with disabilities and their families to set up a special savings account for disability-related expenses. Earnings on an ABLE account would not be taxed, and account funds would generally not be considered for the supplemental security income (SSI) program, Medicaid, and other federal means-tested benefits. 2. How does this differ from current law? Current law makes savings for disability-related expenses difficult. Individuals and families can face the loss of federal benefits if savings exceed certain limits. 3. Once signed into law by President Obama, how soon would people be able to set-up ABLE accounts? Possibly in 2015. Before accounts can be set up, regulations will have to be written and ABLE programs established in states.
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