A recent CNBC article addresses how ABLE accounts have changed the lives of many people living with disabilities. Before ABLE, federal assistance programs didn’t allow these individuals to have assets over $2,000 and continue to qualifiy for disability benefits. This cap was put into place in 1964 and was outdated, which was a major contributor to why 31.5% of 21-64 year olds with cognitive disabilities were living below the poverty line in 2017. Today, ABLE plans allow someone to save up to $100,000 in an account and contribute up to $15,000 a year without jeopardizing eligibility for federal assistance.
The article references the scope of the ABLE market, noting that Ascensus currently serves as program administrator for 20 states and Washington, D.C. As of November, ABLE account owners on the Ascensus platform have contributed $51.9 million in savings and have withdrawn $16.7 million to pay for qualified expenses.