New Mexico State Treasurer’s Office

ABLE Act

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Accounts for Persons with Disabilities Act

Link to text of NM HB61

Link to New Mexico State Legislation, nmlegis.gov

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.

The State of New Mexico will offer its own plan in January 2018. Meanwhile, please sign up with the State of Ohio (which will roll into the New Mexico plan) at:

Ohio STABLE http://stableaccount.com/

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/
The Arc http://www.thearc.org/
New Mexico Human Services Department http://www.hsd.state.nm.us/
Social Security Administration https://www.ssa.gov/

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