In mid-December, Congress enacted, and President Obama has now signed, legislation called the ABLE (Achieving a Better Life Experience) Act.

For years Congress has not recognized that it takes a lot of money to care for a disabled child and has not afforded all of the considerations that should have been offered to parents. A key aspect of this new Act is that it allows children to keep their Medicaid and SSI benefits and also have funds be set aside by parents (and others) in a non-tax environment (with some limits). This new Act also allows disabled individuals (themselves) to set up these special accounts.

For additional information, please visit the Skoda Minotti Blog provided by Cleveland Sight Center Board Trustee Jim Sacher of Skoda Minotti CPAs, Business & Financial Advisors. The information includes qualifications, covered expenses and tax-free savings.

Our understanding is that the state of Ohio will need to develop its own guidelines for the program and that should happen in 2015. As always, you should consult your attorney, accountant or financial advisor as you explore the impact of this new legislation.