Accounts for Persons with Disabilities Act
The Federal “Achieving a Better Life Experience” (ABLE) Act was adopted in 2014 and was enacted in the 2016 New Mexico Legislative session as the “Accounts for Persons with Disabilities Act.” The ABLE Act allows qualifying people with physical and intellectual disabilities to establish tax-free savings accounts to put aside money to cover expenses related to their disability—including assistive technology, personal assistance services, housing, and healthcare—without losing their eligibility for public assistance. Individuals with disabilities with an onset before age 26 are eligible for the accounts and can contribute as much as $14,000 per year with a lifetime limit of $100,000.
The ABLE accounts will be administered as a 529A account, similar to the 529 College Savings Program and beneficiaries may choose from a variety of investment options, similar to 529 college savings accounts or Roth IRAs. Participants can withdraw and spend money as needed for qualified expenses.
When ABLE was first enacted, the federal government required each state to establish its own ABLE plan. Since that time, the law has changed and individuals may now sign up under any state’s plan which best suits their needs. The State of New Mexico does not currently offer its own plan due to limited resources and the administrative fees involved with implementing a program. The State Treasurer’s Office will administer the program, however residents will be joining other state’s plans. The State Treasurer’s Office is available to answer questions about the ABLE Act and offers the following list of additional resources:
|ABLE National Resource Center||http://www.ablenrc.org/|
|New Mexico Human Services Department||http://www.hsd.state.nm.us/|
|Social Security Administration||https://www.ssa.gov/|
Links to ABLE Programs that offer enrollment to qualified individuals with disabilities in New Mexico are provided below. The list will be updated as more programs become available.
|Alaska Save with ABLE||https://ak.savewithable.com|
|Oregon ABLE for ALL
|Rhode Island Save with ABLE||https://ri.savewithable.com|