In 2014, The Stephen Beck Jr. Achieving a Better Life Experience (ABLE) Act (hereafter referred to as the “Act”) was passed and signed into law. The Act created a special account that would be exempt as a resource for public benefits, such as SSI and SoonerCare. A beneficiary does not have to be on SSI or Social Security-Disability to open an ABLE account. States develop their own programs. In 2015, an amendment was passed so people could open an ABLE account in a state other than the one in which they reside.
What are the components of a properly drawn-up ABLE account?
- The beneficiary, a person with a significant disability, must be the account owner.
- A beneficiary may have only one ABLE account
- The onset date of the beneficiary’s disability must be before s/he turned 26 years old.
- The age of the beneficiary at the time the ABLE account is established doesn’t matter.
- Upon the death of the beneficiary, the ABLE account reimburses the state Medicaid agency for medical bills covered since the creation of the ABLE account.
Who can put money in the ABLE account? Are there limits to how much may be in the account?
- Anyone can deposit money into a beneficiary’s ABLE account
- There is no limit to the account balance to be eligible for SoonerCare.
- SSI will count the balance above $100,000 towards eligibility for an SSI benefit.
- Client can still be eligible for the SSP or QMBP if the SSI benefit is closed or suspended.
- SSI will count the balance above $100,000 towards eligibility for an SSI benefit.
Are deposits into the ABLE account considered income?
- Contributions to the account by the beneficiary are not countable income.
- Income directly deposited into the account is counted towards the beneficiary’s eligibility.
- Third party contributions, including a contribution from an exempt trust belonging to the beneficiary, are not considered as income.
- Interest and dividends earned by the ABLE account are not considered income for the beneficiary.
How can the money in an ABLE account be used? Is any use countable towards eligibility?
- The Act specifies the money from an account can be used to pay for disability-related expenses. SSI refers to them as Qualified Disability Expenses (QDE).
- DHS only needs to be concerned with money transferred from the ABLE account to a personal bank account. Money transferred from the ABLE account but spent in the month of the transfer is not part of the countable resource. If the money is kept in the account till the next month, it is part of the countable resource.
What are the social service specialist’s responsibilities when a client has an ABLE account?
- Get a document that shows it is an ABLE account. The document should say “ABLE” or “STABLE”.
- An email is sent to Josh.Holloway@okhca.org and Anita.Fife@okhca.org so OHCA is informed the ABLE account exists.
- Other agencies, such as SSI and IRS, track the account activity so DHS doesn’t need to.
- An email is sent to Josh.Holloway@okhca.org and Anita.Fife@okhca.org when it is discovered the client has died.
For more information about ABLE accounts
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