ABLE Accounts and Medicaid Payback

What’s an ABLE Account? New tax-free savings tool for qualified individuals with disabilities Doesn’t affect eligibility for means-tested government benefits Similar to 529 College Savings Plan

ISM and SSI Supplemental Security Income (SSI) is intended to pay for food and housing Money from third parties used to cover such expenses is considered In-Kind Support and Maintenance (ISM) Includes distributions from special needs trusts ISM lowers individual’s monthly SSI payments

Important ABLE Benefit ABLE account, regardless of funding source, can be used to pay for shelter and household operating expenses without affecting Supplemental Security Income (SSI)

Typical Expenses Rent Mortgage payments Home insurance (if required by mortgage terms) Real Property taxes Heating fuel Gas Electricity Water Sewer Garbage removal

SSI Example Someone pays directly for SSI recipient’s rent: Monthly SSI could drop by up to $265, or $3,180 annually Someone contributes same funds to SSI recipient’s ABLE account: ABLE distribution could pay for rent without affecting SSI