What Are ABLE Accounts in New Jersey? - Christine Matus

BSPE Legal Marketing Podcast

From Matus Law Group - In this episode, we explore "What Are ABLE Accounts in New Jersey?" and how these accounts can be a valuable financial tool for individuals with special needs and their families. Established under the Stephen Beck, Jr., Achieving a Better Life Experience (ABLE) Act of 2014, ABLE accounts allow eligible individuals to save money for critical expenses while maintaining their eligibility for essential government benefits like Supplemental Security Income (SSI) and Medicaid. We discuss how these accounts provide financial stability without compromising access to programs such as Section 8 housing, food stamps, and the Division of Developmental Disabilities (DDD).

Listeners will learn about the eligibility requirements for opening an ABLE account in New Jersey, including the necessity of a disability diagnosis before age 26 and the functional limitations required under SSI or Social Security Disability Insurance (SSDI) criteria. The process for setting up an account is also detailed, including the need for documentation such as a doctor’s diagnosis or a benefits verification letter, as well as the initial contribution requirements. The flexibility offered by authorized representatives, including parents, legal guardians, or those with a power of attorney, makes ABLE accounts an accessible option for many families.

We also highlight the types of qualified disability expenses that ABLE accounts can cover, ranging from housing and education to transportation and personal support services. The tax-deferred growth on account earnings and the annual contribution limits are discussed, along with the implications of exceeding these thresholds. Additionally, we touch on the requirement for Medicaid reimbursement if funds remain in the account after the account holder’s passing, making estate planning an essential consideration when setting up an ABLE account.

Finally, this episode underscores the importance of working with a knowledgeable New Jersey estate planning attorney when incorporating ABLE accounts into a broader estate plan. At Matus Law Group, we help families navigate the complexities of managing these accounts, ensuring that individuals with special needs can benefit fully from this resource. Tune in to understand how ABLE accounts can support health, independence, and quality of life for loved ones while safeguarding critical benefits.
Matus Law Group
81 E Water St #2C, Toms River, NJ 08753, United States
[phone]
https://www.google.com/maps?cid=6876392708092026946