Michigan Attorneys Providing Excellence in Estate Planning and Elder Care

IRS Raises ABLE Account Limit: What You Need to Know

IRS Raises Able Account Limit

As we step into the new year, there's an important update in the realm of estate planning and financial management for individuals with disabilities: the IRS has raised the federal gift tax exclusion from $17,000 to $18,000 annually. This seemingly small change carries significant implications, particularly for those utilizing ABLE (Achieving a Better Life Experience) accounts.

ABLE accounts have been a valuable tool for individuals with disabilities and their families, offering a tax-advantaged way to save and invest for disability-related expenses without jeopardizing eligibility for essential government benefits like Medicaid and Supplemental Security Income (SSI). With this recent increase in gift tax exclusion, families and individuals now have the option to contribute more each year to their ABLE accounts, enhancing their ability to plan for the future and secure financial stability.

ABLE accounts are currently offered through programs in 47 states, with many programs open to individuals nationwide if they meet certain eligibility criteria, including having a disability that onset before age 26. However, there's even more promising news on the horizon: under a federal law passed in 2022, the age limit for eligibility will rise to 46 starting in 2026. This expansion of eligibility criteria will open doors for more individuals to access the benefits of ABLE accounts, providing greater financial independence and security for those with disabilities and their families.

At Mannor Law Group, we understand the importance of staying informed about changes like these and how they impact our clients' financial planning strategies. If you have questions about ABLE accounts for yourself, your loved ones, or your clients, we're here to help. Our team of experienced elder law attorneys specializes in helping individuals and families access, preserve, and maximize the benefits they are entitled to, including the use of ABLE accounts.

Whether you're exploring options for saving for future disability-related expenses, navigating the complexities of government benefit programs, or seeking guidance on estate planning strategies that prioritize the needs of individuals with disabilities, we have the knowledge and expertise to assist you every step of the way. Our personalized approach ensures that each client receives tailored solutions that address their unique circumstances and goals, empowering them to achieve greater financial security and peace of mind.

Don't let uncertainty hold you back from accessing the resources and support you need. Contact us today to learn more about how we can help you harness the full potential of ABLE accounts and other estate planning tools to secure a brighter future for yourself or your loved ones.

To schedule a consultation or inquire about our services, please call (810) 645-8426 or visit our website at www.mannorlawgroup.com.

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