Able Account Utah Explained

Able Account Utah is a tax-advantaged savings plan designed to help Utah residents with disabilities save for their future expenses.

The plan allows individuals with disabilities to save up to $14,000 per year without affecting their eligibility for government benefits.

This savings plan is administered by the State of Utah and is designed to provide a secure financial future for individuals with disabilities.

To be eligible, applicants must have a disability certification from a licensed healthcare provider, which can be obtained through the Utah Division of Disability Determination Services.

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An ABLE Account Utah is a type of savings account specifically designed for individuals with disabilities.

To qualify for an ABLE Account Utah, the account holder must have a qualifying disability under the Social Security Administration guidelines, which must have begun prior to the age of 26.

An ABLE Account Utah can receive up to $15,000 annually, and the funds can be used for goods or services related to the account holder’s disability without being included in the $2,000 asset total.

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The account can be used to pay for things a Utah Special Needs Trust cannot, such as housing costs.

There is no penalty for a Utah Special Needs Trust to contribute to an ABLE Account Utah.

Here are some key features of ABLE Utah:

Utah residents pay $2.25 per month, or $27.00 annually, to maintain a STABLE account through ABLE Utah.

There are also asset-based fees, ranging from 0.19% to 0.33%, depending on the chosen investment options.

Other administrative fees may apply, such as a return check fee, depending on your account activity.

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Maintaining a STABLE account through ABLE Utah comes with minimal costs, including a monthly fee of $2.25 that's charged quarterly, totaling $27.00 annually.

Utah residents pay this fee regardless of their account activity, so it's essential to factor this cost into your budget.

There's also a small asset-based fee that ranges from 0.19% to 0.33%, depending on the investment options you choose for your account.

Other administrative fees may apply, such as a return check fee, which can vary depending on your account activity.

More detailed information about fees is available in the ABLE Utah Fees FAQ, which can help you better understand the costs associated with your STABLE account.

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A Utah ABLE Account is a game-changer for families with special needs, offering flexibility that a Utah Special Needs Trust can't match.

The account can hold up to $100,000 exempt from the $2,000 asset limit imposed by SSI and Utah Medicaid. To qualify, the account holder must have a qualifying disability under the Social Security Administration guidelines, which began prior to age 26.

Funds in an ABLE Account belong to the child with special needs, and the account can receive up to $15,000 annually. So long as the funds are used for goods or services related to the account holder's disability, they are not included in the $2,000 asset total.

A Utah Special Needs Trust can contribute to a Utah ABLE Account without triggering any penalty. In fact, the ideal scenario is for the trust to hold the bulk of the funds and distribute only what's needed into the ABLE Account.

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Here's a quick rundown of the benefits of a Utah ABLE Account:

ABLE Utah is a program that offers the STABLE Account Plan to eligible Utah residents. It's a partnership between Utah and Ohio that provides lower annual investment fees than usual.

The program is designed to help individuals with disabilities save and invest money without losing eligibility for certain public benefits programs. For example, Medicaid or SSI.

Earnings in an ABLE Utah account are not subject to federal income tax, as long as the earnings are spent on qualified disability expenses. This can help individuals with disabilities keep more of their hard-earned money.

Here's a quick overview of the program's key features:

Overall, ABLE Utah is a great option for individuals with disabilities who want to save and invest money without sacrificing their public benefits.