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TAX DEFERRED SAVINGS ACCOUNTS FOR THE DISABLED

Posted by Admin Posted on Aug 28 2015

There is a current movement within Congress to create savings accounts for those who have a mental or physical disability, much like the current 529 plans that are in place.

These accounts would allow a nondeductible contribution, probably up to $14000 per year, as well as tax free withdrawals, as long as the monies are used for housing, education, transportation, dental care, and other expenses for an eligible individual.

There may be an age limit of 26 placed on the disabled beneficiary of the plan as well (ie must be disabled prior to age 26), and the account would not be counted when considering Medicaid eligibility.

We will keep you posted on the developments as they occur.