ABLE Accounts Explained! (SHOULD YOU OPEN ONE?)

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Күн бұрын

ABLE ACCOUNTS EXPLAINED! (SHOULD YOU OPEN ONE?) | Do you have a disability or have a child that has a disability? If so, you may want to look into setting up ABLE accounts - they are tax-free, savings & investment accounts specifically for people with disabilities. In this video, I’m going to explain the 5 most important features of an ABLE account.
#ableaccountsexplained #ableaccountfordisabled #ableaccount #ableaccountinvestmentoptions #ableaccountcontributionlimits2022 #ableaccountlimits2022 #ableaccountwithdrawals
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Skip Ahead Here!
0:00 - ABLE Accounts Explained! (SHOULD YOU OPEN ONE?)
0:24 - What are the three main advantages of ABLE accounts?
2:07 - Who is eligible for an ABLE account?
3:10 - How much can I contribute to an ABLE account?
3:57 - What are my investment options in an ABLE account?
4:23 - ABLE account withdrawals: What are qualifying expenses?
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The One-Page Financial Plan by Carl Richards (easy read, holistic + fun graphics!) amzn.to/35NH54Z
Simple, Smart Investing by Ian Kennedy (can help you construct your investment portfolio)
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A Random Walk Down Wall Street by Burton G. Malkiel (classic book that sold me on index funds) amzn.to/2H7pbzS
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Пікірлер: 48

@DistrictCapital Жыл бұрын

Skip Ahead Here! 0:00 - ABLE Accounts Explained! (SHOULD YOU OPEN ONE?) 0:24 - What are the three main advantages of ABLE accounts? 2:07 - Who is eligible for an ABLE account? 3:10 - How much can I contribute to an ABLE account? 3:57 - What are my investment options in an ABLE account? 4:23 - ABLE account withdrawals: What are qualifying expenses?

@stacyracy9770 Жыл бұрын

I don't understand why you have to become disabled before 26? I was paralzed at 30...I should have the same ability to fund an investment account as someone 4 years younger than myself!

@DistrictCapital Жыл бұрын

Hi Stacy, We understand your frustration. Advocates are working to increase the age for eligibility for ABLE accounts. The bipartisan ABLE Age Adjustment Act would raise the eligibility cap for ABLE accounts to the onset of disability before age 46. We will let you know if this act passes and becomes law. Thanks!

@stacyracy9770 Жыл бұрын

@@DistrictCapital Thank you for your reply! Do we have a date for a vote on this? It would be so nice to have extended before a rebound in the mkt.

@myoldvhstapes Жыл бұрын

A spokesman for CalABLE explained it: The age limit was chosen because the federal government feared that the hundreds of thousands of eligible people would all open accounts and suddenly start socking away $15,000 a year, every year, keeping it out of the tax system. I had a good laugh. Clearly those bureaucrats do not know their intended customers AT ALL! If they'd had a way to save an "extra" 15 grand a year before ABLE accounts came into existence, they would have already been doing it- just off the books.

@stacyracy9770 Жыл бұрын

@@myoldvhstapes No doubt! Most people disabled even at 40, depending on their level of disability will rack up debt for uncovered Healthcare, assistants which typically isn't covered, and prescription drugs that you either wait to get approved or just pay out of pocket. I think there should be levels of disability. Obviously, migraine or depression will have less expense than a stroke, paralyzed or cancer patient. These patients should honestly be able to stash away cash tax free for medical and living, instead of just earn tax free returns on investments.

@sr2291 9 ай бұрын

ABLE is changing its age limit to before 46 in 2026 so you will be eligible on Jan 1, 2026.

@jamiljoyner7785 4 ай бұрын

Excellent explanation, thank you!

@DistrictCapital 4 ай бұрын

Thank you. I'm glad you found the video useful!

@clare2439 Жыл бұрын

thanks for the video! im just confused - i thought the maximum amount in the account is $100k? but then you said $28k? could you please explain?

@nineironshore Жыл бұрын

What about savings for medicaid?

@sdglobal 6 күн бұрын

This is so much great helpful information for helpless people. What is the website to open an ABLE account from New York? Please give the URL for New York City. Thank you!!! 👍👍👍

@DistrictCapital 5 күн бұрын

Thank you very much for your kind comment. Here is the URL for you - www.mynyable.org/ Have a great evening!

@sdglobal 4 күн бұрын

@@DistrictCapital Thank you so much for the information. Can I withdraw all money from an able account at a time if I need to buy a house?

@DistrictCapital 4 күн бұрын

@@sdglobal Sorry, we are unable to give you specific financial advice. However, if you contact NY Able they will be able to help you - clientservices@mynyable.org Thanks!

@wishIKnewHowToLove Жыл бұрын

thank u

@DistrictCapital Жыл бұрын

You're welcome!

@deekay6526 Жыл бұрын

Can you please explain further about what they can withdrawal for. For instance. I want to set up an ABLE account for things my son likes that we pay for now, but won't be here for forever. For instance...if he wants a new TV, if he wants to buy a blanket or pillow, can it be used for restaurant food? He is 26 but has been severely disabled from birth. My husband and I are legal guardians and want to set this up only if it can be used for those types of expenses as those are the things he likes to spend money on. I just need clarification. Thank you.

@DistrictCapital Жыл бұрын

The guides provided by the ABLE National Resource Center would be the best resource to determine if an expense is covered - www.ablenrc.org/determining-whether-something-is-a-qualified-disability-expense-qde/

@jamesrockford5737 4 ай бұрын

I have little money in for about 2 years 200.00 now down to 59.20 boy I’m glad I did put more in What a rib off

@DistrictCapital 4 ай бұрын

I'm sorry to hear that James! Good luck on your financial journey!

@RVI123 Ай бұрын

I am into my seventies . Can I open able account ?

@indigogal2010 Жыл бұрын

These ppl don’t really know because they don’t have one.

@charliel1967 Жыл бұрын

I was told I could open an Able account by a disability attorney. He never mentioned that one must be under 26...Can you please clarify?

@DistrictCapital Жыл бұрын

Thank you for your question. To clarify further, to be eligible the onset of your disability must have happened before turning 26 years of age. If you meet this age criterion and are also already receiving benefits under SSI and/or SSDI, you are automatically eligible to establish an ABLE account. Therefore, you can open an account if you are older than 26 as long as your disability started before 26. Hopefully that helps!

@ManuelMartinez-uv7ei Жыл бұрын

Hi, why aren't the Share buttons working?

@DistrictCapital Жыл бұрын

It appears to be working from our side. Here's the link if you want to share the video - kzfaq.info/get/bejne/mptpiJiFxMrNdX0.html Thanks!

@DistrictCapital Жыл бұрын

Do you have any additional questions about ABLE accounts?

@Clinisha Жыл бұрын

How does this work, when you are your childs representative payee and they are counting your income as assets and the asset are over the $2000 a month limit.

@MLilBitz8344 Жыл бұрын

@@Clinisha it would still protect your childs future as an adult with disability. Invest now because as an adult, your assets are counted a little different (if your child still lives with you as an adult) Contribute now, in the future this will help with Medical and housing as well as transportation. It's a good program.

@anthonysabatine6958 Жыл бұрын

Is it possible to mange your own ABLE account or use an online brokerage like M1 or fidelity?

@DistrictCapital Жыл бұрын

@@anthonysabatine6958 Yes. Here is a link to the ABLE account managed by Fidelity - www.fidelity.com/able/attainable/overview

@Z0MBiiK1TTY 10 ай бұрын

What is additional contributional benefit? Is that for when other people want to help add to your able account?

@tiffanythomas453 Жыл бұрын

Can the investment part of the able account take money from you

@DistrictCapital Жыл бұрын

No, the investment part of an ABLE account cannot take money from you directly. The investments within an ABLE account may fluctuate in value based on market conditions, but the account itself does not have the ability to withdraw money from you or take funds from your personal assets. The funds in the ABLE account belong to the account holder and are intended for their benefit and use. It's important to note that while the investments within an ABLE account carry some degree of risk, account holders typically have a range of investment options to choose from, such as mutual funds or other investment vehicles with varying risk levels. It's advisable to consult with a financial advisor who can provide guidance on selecting suitable investments based on your specific financial goals and risk tolerance.

@tiffanythomas453 Жыл бұрын

Ok but can I pull money as needed in timely manner For items that are covered

@tiffanythomas453 Жыл бұрын

Or would I have to wait a certain period of time

@DistrictCapital Жыл бұрын

@@tiffanythomas453 Yes, you can withdraw funds from your HSA at anytime. However, you must use the funds for qualified medical expenses. If you use HSA funds for any reason other than to pay for a qualified medical expense, those funds will be taxed as ordinary income, and the IRS will impose a 20% penalty.

@tiffanythomas453 Жыл бұрын

@@DistrictCapital ok last question I think what a hsa? Thinking of opening one today

@RVI123 Ай бұрын

I am not disabled .

@rolopez3140 Жыл бұрын

Can we build credit with able

@DistrictCapital Жыл бұрын

Thanks for your question. Unfortunately you cannot build credit with an ABLE Account.

@DistrictCapital Жыл бұрын

Thanks for your question. Unfortunately you cannot build credit with an ABLE account.

@indigogal2010 Жыл бұрын

They sound better then they are. Answer this why can’t you ever get to the real people at the bank that able uses? How are they getting hacked? Why do u use ABLE then a random bank? Try getting your $$ back if you get hacked.