[NABS-L] Advice on saving money while receiving Social Security and working

[Bridges Help Desk]

Mariya,



I echo the recommendations about ABLE accounts. They are inexpensive,
flexible savings accounts for individuals with a Social Security-eligible
disability that also you to save up to $100,000 while maintaining
eligibility for government support programs.


Here are some fast facts about how an ABLE account can help you (assuming
that you live in California and that you became disabled before your 26th
birthday):



1.     Up to $100,000 in ABLE account funds will NOT be counted as a
resource for any means-tested program (such as SSI, SNAP, FAFSA, etc.).

2.     Deposit limits

a.     You may deposit up to $18,000 this year in your ABLE account.

b.     As a working individual, you may deposit up to an ADDITIONAL $14,580
(the additional amount is your annual GROSS earned income or $14,580,
whichever is less.

c.     In other words, you may deposit up to $32,580 into an ABLE account
this year -- assuming that your gross earned income equals or exceeds
$14,580.

d.     Please note that gifts from others may be deposited into your ABLE
account, and those gifts will not be counted as income (as they are for SSI
recipients). However, the TOTAL annual ABLE account contribution is capped
at $18,000 plus the account owner's gross earned income up to $14,580 --
for a maximum of $32,580.

e.     For more details about contributions into an ABLE account, check out
this article: *How Much Money Can Go into an ABLE Account?
<https://imagemd.org/2023/08/28/how-much-money-can-go-into-an-able-account/>*

3.     Spending ABLE account money

a.     You may spend ABLE Account funds on a wide variety of items,
including food, housing, transportation, tuition. personal care, medical
expenses, etc.

b.     Full more details on these “qualified expenses,” please check out
this article: *How Can ABLE Account Funds Be Spent?
<https://imagemd.org/2023/08/28/how-can-able-account-funds-be-spent/>*

c.     Withdrawals are NOT considered income for SSI or SSDI so long as the
withdrawal is used for a qualified expense

4.     Tax treatment of ABLE accounts

a.     Investment growth (interest, dividends, etc.) are NOT taxable

b.     Withdrawals are NOT taxable income so long as withdrawals are used
for qualified expenses

c.     Some states offer state income tax deductions for ABLE Account
contributions, but California does not.







Here are some additional resources from our Bridges Resource Library that
provide more details about ABLE Accounts:



·       *All About ABLE Accounts
<https://imagemd.org/2023/08/28/all-about-able-accounts/>*

·       *ABLE Accounts – Frequently Asked Questions
<https://imagemd.org/2023/10/03/able-accounts-frequently-asked-questions/>*





Please feel free to reach out to the Free Maryland Bridges Technical
Assistance Center and our Helpdesk for more information.





Carlton




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