Up until very recently, recipients of SSI benefits – or Supplemental Security Income – were not allowed to build any sort of savings account beyond $2,000. Many have long argued this is a grave disservice, particularly for those individuals who are able to work to some degree.
But as The New York Times recently reported, recipients risked losing their much-needed benefits if they started to compile even a meager savings beyond that $2,000. Take, for example, the 27-year-old man with Down syndrome profiled. He works two jobs – one folding towels at a local gym and another taking tickets at a nearby movie theater. However, he was never allowed to keep more than $2,000 in the bank at any given time, otherwise he’d lose the SSI benefits on which he heavily relied.
Now, a new kind of savings account is giving this young man and others an opportunity to begin saving more cash. It’s called an ABLE account, and it allows people with disabilities and their families to save up to $14,000 annually – without losing any benefits. Continue reading