ABLE Plans and Special Needs Trusts

#1 is now on either SSI or SSDI or both. Yeah, we ’re not sure. Might even have changed. This is a lot weirder than I expected.There is, with one or the other, apparently a peculiar incentive for caregivers to retire at 62 rather than, say, 67 (something to do with family Social Security caps and spouses).  There’s also something in there about Medicare with MA Backup after two years on SSDI, claims that it’s best to do at least one year of SSI before SSDI, 9 month income averages, retroactive payments that can be clawed back and so on.The accounting is interesting — trying to stay below income and asset caps.With SSI/SSDI we can get an ABLE 529A account so that he can save without running over his asset caps. The funds can only be used for things that improve health/mobility/function — but that’s could cover a lot of ground. Maybe mobile data services? Fitness services? Golf gear? Bicycle?Thebest discussion I found on ABLE plans was in the respected Bogleheads forum:You are not going to find any 529 ABLE plan with no annual account fee and expense ratios of 0.1%, certainly for non-residents. I call the reason for this the " 529/HSA Effect " . While they might be quite popular among Bogleheads, only a distinct minority of the population takes advantage of either of those plans. With volume comes competition and lower costs. Now consider the minuscule population eligible for 529 ABLE accounts. If they hadn ' t been smart and piggy backed on Section 529, they would...

Source: Be the Best You can Be - July 26, 2018 Category: Disability Tags: adult finance support Source Type: blogs