ABLE Accounts WHAT YOU NEED TO KNOW IN NEVADA Presented by the . - - PowerPoint PPT Presentation

ABLE Accounts

WHAT YOU NEED TO KNOW IN NEVADA

Presented by the ……….

Nevada Disability Advocacy & Law Center

This presentation is for informational purposes only and does not constitute legal or investment advice.

• Federally mandated Protection & Advocacy agency
• Statewide - Reno, Elko, Las Vegas
• Facility monitoring and investigation
• Free information/referral and legal services to

individuals with disabilities

2

Agenda

1.What are ABLE accounts? 2.Who is eligible? 3.How do ABLE accounts work? 4.How do ABLE accounts affect benefits? 5.Where can I go for more information?

3

Stephen B phen Beck, J Jr. Achieving ng a a Bet etter er Life E e Exper erien ence e (AB ABLE) Ac Act of 201 2014

• H.R. 647, 115th

Congress

• Codified at 26

U.S.C. 529A

Photo courtesy of the National Down Syndrome Society, www.ndss.org

4

ABLE E Progr

• grams Na

Nation

• nwide
• As of 5/8/2018 – only 15 states do

NOT offer some type of ABLE program:

Arkansas California Connecticut Delaware Hawaii Idaho Maine Mississippi New Jersey North Dakota Utah South Dakota Oklahoma Washington Wisconsin

Photo courtesy of the National ABLE Resource Center, www.ablenrc.org

5

• SB 419 passed in 2015
• Codified at

NRS 427A.882-896

6

Nevada Law

Tax-advantaged savings accounts that allow individuals with disabilities to save for disability -related expenses while retaining access to benefits like SSI and Medicaid

7

AB ABLE LE Acc Accounts ts

• Onset of disability before age 26, and either:
• SSI or SSDI recipient, or
• Meets SSA disability certification requirements
• Marked or severe functional limitations
• Impairment expected to last at least 12 months or

result in death

• Physician letter

8

Elig ligib ibili lity

• ABLE Nevada - administered by State Treasurer through

Fifth Third Bank

• $25 to open online, or with a paper application
• Person with disability or an Authorized Individual can open

the account (requires legal documentation)

• Option to authorize account access for other individuals
• Nevada residency is not required

9

Acc Account M t Mech chan anics cs

• Limited to one account
• Assets in the account may not be used as loan security
• Investment fees 0.34-0.38%, plus a $15 quarterly fee
• Multiple investment options
• Option for checking account with ATM access

10

Account M Mechanics, c continued…..

• Limited to $15,000

annually from all sources

• Account balances up to

$100,000 will not affect SSI or Medicaid

• Account balance may

not exceed $370,000

11

Contribution

• ns

• No limit on the number
• f distributions
• Distributions are tax free,

as long as they are used for qualified disability expenses (QDE)

• Earnings not spent on

QDE will be subject to income tax, plus a 10% penalty

12

Di Distribution

• ns

Any expenses relating to disability and intended to improve health, independence, or quality of life:

• Education
• Health and Wellness
• Housing
• Transportation
• Legal Fees
• Financial Management
• Employment Training

and Support

• Assistive Technology
• Monitoring and

Oversight

• Funeral and Burial

13

Qualified Disability Ex Expenses (QDE)

• An ABLE distribution is counted as a

resource for SSI purposes if the beneficiary retains the distribution into the month following the date of receipt

14

SSI SI Ho Housing g Related ed QD QDEs

• ABLE Program reports account activity to the IRS

and SSA

• Advisable to maintain records of contributions,

disbursements, and QDEs

15

Ke Keep Re Records

• Balances less than $100k:
• Will not count toward $2k SSI resource limit
• Will not affect eligibility for SSI or Medicaid
• Balances exceeding $100k:
• Amount over $100k counts towards the SSI resource

limit

• When the $2k SSI resource limit is exceeded, SSI will

be suspended (not terminated) until resources fall back below limit

• Medicaid eligibility will not be affected

16

Effect o

• n F

Federal Benefits

• Generally, balances less than $100,000 will

not affect State benefits

• State’s Agency Care Coordinator can explain

the impact to benefits

17

Effect on

• n St

State e Ben Benefit its

• Upon the death of the beneficiary, the State

can seek reimbursement from the account for the amount that Medicaid spent on the beneficiary’s care

18

Medicaid ‘Pay-Back’

• ABLE to Work Act of 2017 (S. 818, 115th Congress)
• ABLE Financial Planning Act (H.R. 1897, 115th

Congress)

• ABLE Age Adjustment Act (S.817, 115th Congress)

19

The Future o

• f AB

ABLE

ABLE National Resource Center www.ablenrc.org info@ablenrc.org

20

For Additional I Informa mation….

ABLE Nevada 1-888-609-8916 8 am – 5 pm M-F

www.nv.savewithable.com nv.clientservice@savewithable.com

21

To Establ blish a h an n Account ….

Nevada Care Connection Resource Centers:

• South - Nevada Senior Services

844-850-5113

• North/Rurals - Access to

Healthcare Network 877-861-1893

• Churchill County Senior Center

775-423-7096

• Lyon County Human Services

775-577-5009

22

For A Additional Assistance … ….

Nevada Aging & Disability Services Division (ADSD)

www.adsd.nv.gov 888-609-8916

23

For A Additional Assistance … ….

Nevada 211 2-1-1 (telephone) 898-211 (text) www.nevada211.org

24

For A Additional Assistance … ….

Southern NV Office 2820 W. Charleston #B-11 Las Vegas, NV 89102 702-257-8150 Northern NV Office 1875 Plumas St. #1 Reno, NV 89509 775-333-7878 Rural NV Office 905 Railroad #104B Elko, NV 89801 775-777-1590

www.ndalc.org

25

For A Additional Assistance … ….

.…To the State Bar of Nevada’s LRIS Public Service Grant Program for making this presentation possible!

26

Spe pecial Tha hank nks ….