The Internal Revenue Service recently announced less stringent federal rules for new accounts that allow people with disabilities to save money without jeopardizing their government benefits. Earlier this year, the IRS established how the Achieving a Better Life Experience (ABLE) Act accounts would operate. After push-back from disability advocates that the proposed requirements would be too burdensome, the IRS is issuing final regulations with less stringent reporting requirements. Specifically, individuals opening ABLE accounts will not need to submit medical documentation, but will have to certify under penalty of perjury that they have a qualifying diagnosis.
South Carolina has a bill pending to be reconsidered during this legislative session to establish the South Carolina Able Savings Program to allow individuals with a disability and their families to save private funds to support the disabled individual. The Act allows private funds to be used for disability-related expenses in a way that supplements, but does not supplant, benefits the person is already receiving through insurance, Medicaid, SSI or other sources.
Please contact LawyerLisa for information on disability planning, special or supplemental needs trusts or guardianship and conservatorship actions at 803-563-5163.
For more information, visit the State Treasurer's page: http://www.treasurer.sc.gov/citizens/sc-able/
The text of the bill is available at: http://www.scstatehouse.gov/sess121_2015-2016/bills/3768.htm