Up to $305,000 that is held in an ABLE account will be excluded from consideration as a “resource” for purposes of NJ Medicaid programs (the limits is $100,000 for SSI). The accounts can only be funded by deposits of up to the federal gift tax exclusion per year ($15,000 in 2019), plus certain limited contributions of income, unlike a Special Needs trust which can be funded with unlimited amounts of assets by a disabled individual under age 65. In previous posts I have discussed the uses of ABLE accounts as a distinct form of asset preservation and flexibility in expenditures for Qualified Disability Expenses, for individuals who became disabled before age 26. The Med-Com provides examples of qualified disability expenses, and expenses that could cause problems.
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