Quarterly Legal Tip

My apologies for the late article! There have been some positive developments in my career that have delayed my submission of my Quarterly Legal Tip. I hope you will forgive my tardiness. Now on to the tip!

Have you heard of the ABLE Savings Account?

Do you know a fellow Montanan who is disabled and qualifies for programs such as Medicaid and SSI? Did you know that sometimes these programs make it difficult for individuals (or their families) to save money for their future or to provide themselves with things like employment training, education, legal fees, assistive technology, reliable transportation, etc., because they or their loved ones are worried about losing or reducing their much-needed benefits?

The April 2018 edition of Montana Lawyer featured an article* by Chief Deputy Attorney General Jon Bennion describing a possible solution to the above. The article states that in 2015 the Montana Legislature created a type of savings account, called ABLE, for disabled Montanans (child or adult with a disability prior to age 26) and their families to save money while not interfering with SSI and Medicaid benefits. Go Montana!

According to the website, https://savewithable.com/mt/home.html, the ABLE savings accounts are sponsored by the State of Montana, administered by the Montana Department of Public Health and Human Services, and is an account plan through the National ABLE Alliance. It is now fully up and running, but only around 70 people have taken advantage of the account; though, hundreds may be eligible. The article states that both individuals and their families may contribute to the account (with certain limits).

If you think an ABLE account may help someone that you love, please go to https://savewithable.com/mt/home.html to find out more information about ABLE savings accounts and its eligibility requirements. You could truly make a difference in someone’s life by simply passing along this information.

More good news! When you enter the website, the following paragraph informs you that…

“On December 22, 2017, President Trump signed H.R 1, the Tax Cuts and Jobs Act, into law. Three provisions in the tax reform bill impact state ABLE programs as follows:

1. Rollovers from 529 college savings accounts into 529A (ABLE) accounts, up to the annual maximum contribution amount, are now permitted under federal law. The state tax treatment of these rollovers is currently being determined by each individual state.

2. Account owners who work and earn income are permitted to make contributions into their ABLE accounts in excess of the $15,000 annual contribution limit under certain circumstances. The designated beneficiary (ABLE account owner) is responsible for ensuring compliance with the ABLE contribution limits. State ABLE programs are in the process of implementing these changes and will provide updates accordingly.

3. The Federal Tax Savers Credit has been extended to include contributions to ABLE accounts with some limits.

Please consult with your tax advisor for any specific guidance tailored to your situation.”

This may be a great way for some of your family members or friends or friends of friends to save money, encourage independence, and help those Montanans with disabilities.

* Bennion, Chief Deputy Attorney General Jon. "Savings accounts created by 2015 Legislature for disabled Montanas now fully implemented." Montana Lawyer April 2018: 24.

Jennifer A. Williams, is the founding attorney at new the Ekalaka law firm: The Law Office of Jennifer A. Williams, PLLC. She can be reached at (406) 489-1269 should you have any questions regarding this article. The Law Office of Jennifer A. Williams, PLLC will be open for business beginning June 1, 2018.

* DISCLAIMER: This article is for general informational purposes only. In no way shall this article constitute legal advice or substitution for legal counsel – and should not be relied upon as such. The information contained in this article is not promised to reflect the most current legal developments; accordingly, information found here is not promised or guaranteed to be correct or complete. As legal advice must be tailored to the specific circumstances of each case, nothing provided in this article should be used as a substitute for advice of competent counsel.