Maximizing Independence with an ABLE Account

Kelly is 24 years old.  He is on the autism spectrum and is receiving SSI.  He is doing his best to be independent, but the monthly stipend is limited and it is difficult to live on his own with minimal funds.  What is his best option to keep his benefits and have the means to sustain himself?

An ABLE account can be established for Kelly.  An ABLE account is an account that can be established for an individual who was diagnosed with a disability prior to the age of 26.  This account can receive up to $15,000 per year without affecting Kelly’s benefits. The ABLE account can accumulate up to $100,000.

Once it reaches $100,000 Kelly’s benefits will be suspended, but not lost.  Kelly will be required to spend the funds in his account on his needs until those funds are below $100,000 again and then his benefits will continue.  ABLE accounts can also be used to pay for food and shelter for Kelly without jeopardizing his SSI benefits.

Hearing this, Kelly was excited.  With this account, Kelly is able to work on being independent while not worrying about losing his benefits.

In addition, if Kelly was to have a supplemental needs trust established for him by a family member or friend, they can fund his ABLE account with those funds so that he can pay for the things that SSI does not allow (i.e. food and shelter) and he can use the supplemental needs trust for his non-necessities.

It is the best of both worlds!