In Maine, individuals with disabilities can benefit from the Able Account, a tax-advantaged savings plan.
The Able Account is designed to help individuals with disabilities save for qualified disability expenses.
Maine residents with disabilities can open an Able Account to save for expenses such as accessible home modifications, transportation, and assistive technology.
Able Account contributions are not subject to federal income tax, and earnings grow tax-free.
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Is Now Live!
As of October 19, 2021, people eligible for an ABLE account can finally set one up through Bangor Savings Bank.
To sign up and for more info, you can visit https://www.bangor.com/able-home.
A person with a disability is eligible to be a beneficiary of an ABLE account if they are eligible to receive benefits based on blindness or disability under Title II or XVI of the Social Security Act, OR attains a Disability Certification meeting specified requirements signed by an authorized medical professional.
The onset of the disability must have occurred before the age of 26.
To learn more about ABLE accounts, you can visit the State Treasurer's webpage at https://www.maine.gov/treasurer/ABLE-MAINE.
MDDC engaged in significant advocacy efforts to bring the ABLE act to the state of Maine, beginning in 2016.
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Resources and Developments
Able Account Maine offers a range of resources to help individuals and businesses manage their finances.
The Maine Revenue Services provides a comprehensive guide to Maine taxes, including information on tax rates, forms, and deadlines.
The Maine Department of Economic and Community Development offers grants and loans to support small businesses and entrepreneurs.
Able Account Maine is a certified public accountant (CPA) firm that provides accounting, tax, and financial planning services to individuals and businesses.
Maine's tax laws are complex, and it's essential to stay up-to-date on the latest changes to avoid penalties and fines.
Worth a look: Able Account Tax Deduction
ABLE Accounts in Maine
ABLE Accounts in Maine are a type of savings plan that allows individuals with disabilities to save up to $15,000 per year without affecting their government benefits.
In Maine, the ABLE account program is administered by the Maine Department of Administrative and Financial Services.
Maine residents can open an ABLE account with a state-approved provider, such as a bank or investment firm.
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Contributions to an ABLE account in Maine can be made by the account owner, family members, or friends, and are limited to $15,000 per year.
The funds in an ABLE account can be used for qualified disability expenses, such as education, housing, transportation, and healthcare costs.
Maine offers a state tax deduction for contributions made to an ABLE account, which can help reduce state income tax liability.
For your interest: Able Accounts by State
ABLE Account and SNT
You can have both an ABLE account and a Special Needs Trust. A Maine ABLE Benefit Checking Account can accept a deposit of funds from a Special Needs Trust within the allowable Deposit Limits.
Having both an ABLE account and a Special Needs Trust can provide extra financial security and flexibility for the Beneficiary.
Additional reading: Able Trust Pool Accounts
Housing and Ism
ABLE accounts can be used to pay for housing expenses, including rent and mortgage payments, up to a certain limit.
The annual limit for housing expenses is $13,000 per year, or $1,083 per month.
Self-settled special needs trusts (SNTs) can also be used to pay for housing expenses, but the funds in the trust must be used for the beneficiary's benefit.
SNTs can be used to pay for home modifications, such as installing a wheelchair ramp or widening doorways, to make a home more accessible for a person with a disability.
ABLE accounts and SNTs can help individuals with disabilities maintain their independence and live in their own homes, rather than in group homes or institutions.
Can a Beneficiary Have Both an ABLE Account and a SNT?
A Beneficiary may have both an ABLE account and a Special Needs Trust. This is because a Special Needs Trust can deposit funds into a Maine ABLE Benefit Checking Account within the allowable Deposit Limits.
Having both an ABLE account and a Special Needs Trust can provide a Beneficiary with more financial flexibility and security.
Consider reading: Can a Beneficiary Contribute to Their Own Able Account
Frequently Asked Questions
How much can go into an ABLE account?
ABLE account contributions are limited to $100,000 to avoid impacting SSI benefits. Exceeding this limit may affect your eligibility for Supplemental Security Income (SSI)
What is the purpose of the ABLE account?
ABLE Accounts help individuals with disabilities maintain independence and quality of life, while also providing tax-free savings for eligible expenses. They offer a way to save for the future without impacting government benefits.
Sources
- https://www.maineddc.org/able-accounts
- https://mainecite.org/training/webinar-building-your-finances-and-independence-with-able-accounts/able-accounts-information/
- https://www.bangor.com/personal-banking/checking/able-home/
- https://www.bangor.com/personal-banking/checking/able-home/able-account-frequently-asked-questions/
- https://www.maineelderlaw.com/articles/able-accounts-the-basics-1-of-3-articles/
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