This week Chris, Liz, and MOe share with you some of what they know about ABLE accounts. Thanks to an omnibus spending bill passing and change effecting ABLE accounts, they felt this was a very timely topic to share the good news.
As we have not seen the bill itself, we have found out since we recorded that the age increase does not go into effect until 2026, but it is still happening.
Click here to see the transcript…
ABLE Accounts: www.ablenrc.org
Post Production help
Brynn Lee: Superblink.org
Podcast: Play in new window | Download
2 responses to “Penny Forward Podcast: All About ABLE Accounts in 2023”
I’m a tax accountant so I’d like to chime in. Unless I’m missing done thing, there is no tax benefit/deduction when the funds go into an ABLE acct. Only benefit is tax free growth. So in order to obtain that tax-free growth benefit you have to let the funds sit, untouched, as long as possible. If you put funds in and take them out a year or two later, there’s little to no benefit
You’re partially correct. Low income tax payers can qualify fot the savers credit by contributing to an ABLE account. For higher-income tax payers, the benefits are much greater if the money is invested and is allowed to grow for a long period of time. As you know, investment growth is uneven, so there could be a great deal of growth in a short period of time E.g. 2010 – 2021, but that isn’t garonteed at all.