ABLE Accounts WHAT YOU NEED TO KNOW IN NEVADA Presented by the ……… . Nevada Disability Advocacy & Law Center This presentation is for informational purposes only and does not constitute legal or investment advice.
• Federally mandated Protection & Advocacy agency • Statewide - Reno, Elko, Las Vegas • Facility monitoring and investigation • Free information/referral and legal services to individuals with disabilities 2
Agenda 1.What are ABLE accounts? 2.Who is eligible? 3.How do ABLE accounts work? 4.How do ABLE accounts affect benefits? 5.Where can I go for more information? 3
Stephen B phen Beck, J Jr. Achieving ng a a Bet etter er Life E e Exper erien ence e (AB ABLE) Ac Act of 201 2014 • H.R. 647, 115 th Congress • Codified at 26 U.S.C. 529A Photo courtesy of the National Down Syndrome Society, www.ndss.org 4
ABLE E Progr ograms Na Nation onwide • As of 5/8/2018 – only 15 states do NOT offer some type of ABLE program: Arkansas California Connecticut Delaware Hawaii Idaho Maine Mississippi New Jersey North Dakota Utah South Dakota Oklahoma Washington Wisconsin Photo courtesy of the National ABLE Resource Center, www.ablenrc.org 5
Nevada Law • SB 419 passed in 2015 • Codified at NRS 427A.882-896 6
AB ABLE LE Acc Accounts ts Tax-advantaged savings accounts that allow individuals with disabilities to save for disability -related expenses while retaining access to benefits like SSI and Medicaid 7
Elig ligib ibili lity • Onset of disability before age 26 , and either: • SSI or SSDI recipient , or • Meets SSA disability certification requirements • Marked or severe functional limitations • Impairment expected to last at least 12 months or result in death • Physician letter 8
Acc Account M t Mech chan anics cs • ABLE Nevada - administered by State Treasurer through Fifth Third Bank • $25 to open online, or with a paper application • Person with disability or an Authorized Individual can open the account (requires legal documentation) • Option to authorize account access for other individuals • Nevada residency is not required 9
Account M Mechanics, c continued….. • Limited to one account • Assets in the account may not be used as loan security • Investment fees 0.34-0.38%, plus a $15 quarterly fee • Multiple investment options • Option for checking account with ATM access 10
Contribution ons • Limited to $15,000 annually from all sources • Account balances up to $100,000 will not affect SSI or Medicaid • Account balance may not exceed $370,000 11
Distribution Di ons • No limit on the number of distributions • Distributions are tax free, as long as they are used for qualified disability expenses (QDE) • Earnings not spent on QDE will be subject to income tax, plus a 10% penalty 12
Qualified Disability Ex Expenses (QDE) Any expenses relating to disability and intended to improve health, independence, or quality of life: • Education • Legal Fees • Assistive Technology • Health and Wellness • Financial Management • Monitoring and • Housing • Employment Training Oversight • Transportation and Support • Funeral and Burial 13
SSI SI Ho Housing g Related ed QD QDEs • An ABLE distribution is counted as a resource for SSI purposes if the beneficiary retains the distribution into the month following the date of receipt 14
Keep Re Ke Records • ABLE Program reports account activity to the IRS and SSA • Advisable to maintain records of contributions, disbursements, and QDEs 15
Effect o on F Federal Benefits • Balances less than $100k: • Will not count toward $2k SSI resource limit • Will not affect eligibility for SSI or Medicaid • Balances exceeding $100k: • Amount over $100k counts towards the SSI resource limit • When the $2k SSI resource limit is exceeded, SSI will be suspended (not terminated) until resources fall back below limit • Medicaid eligibility will not be affected 16
Effect on on St State e Ben Benefit its • Generally, balances less than $100,000 will not affect State benefits • State’s Agency Care Coordinator can explain the impact to benefits 17
Medicaid ‘Pay-Back’ • Upon the death of the beneficiary, the State can seek reimbursement from the account for the amount that Medicaid spent on the beneficiary’s care 18
The Future o of AB ABLE • ABLE to Work Act of 2017 (S. 818, 115 th Congress) • ABLE Financial Planning Act (H.R. 1897, 115 th Congress) • ABLE Age Adjustment Act (S.817, 115 th Congress) 19
For Additional I Informa mation…. ABLE National Resource Center www.ablenrc.org info@ablenrc.org 20
To Establ blish a h an n Account …. ABLE Nevada 1-888-609-8916 8 am – 5 pm M-F www.nv.savewithable.com nv.clientservice@savewithable.com 21
For A Additional Assistance … …. • South - Nevada Senior Services Nevada Care Connection 844-850-5113 Resource Centers: • North/Rurals - Access to Healthcare Network 877-861-1893 • Churchill County Senior Center 775-423-7096 • Lyon County Human Services 775-577-5009 22
For A Additional Assistance … …. Nevada Aging & Disability Services Division (ADSD) www.adsd.nv.gov 888-609-8916 23
For A Additional Assistance … …. Nevada 211 2-1-1 (telephone) 898-211 (text) www.nevada211.org 24
For A Additional Assistance … …. Southern NV Office Northern NV Office Rural NV Office 2820 W. Charleston #B-11 1875 Plumas St. #1 905 Railroad #104B Las Vegas, NV 89102 Reno, NV 89509 Elko, NV 89801 702-257-8150 775-333-7878 775-777-1590 www.ndalc.org 25
Spe pecial Tha hank nks …. .…To the State Bar of Nevada’s LRIS Public Service Grant Program for making this presentation possible! 26
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