(Long Island, NY) For the first time a new law known as the Achieving a Better Life Experience” or 529 Able plan will allow parents and grandparents with special needs children and adults who qualify if they became disabled prior to age 26, to invest more than $2,000 in the disabled individual’s name, according to Rick Cross, founder of Rightfinancialadvisor.com. Previously parents were faced with losing federal and state benefits for those children and adults who had more than $2,000 in their name.
The new 529 ABLE plan now offers family members an easy way to open accounts and avoid taxes on the growth of those accounts providing certain conditions are met. Cross who has been working with nonprofit groups to help parents and investors to understand the new law is visiting organizations and holding meetings with families of disabled individuals to explain the law and to educate parents and investors about what core credentials are needed by financial advisors to be qualified to help build a solid investment plan for disabled children and adults who qualify.
Rick Cross, founder of Rightfinancialadvisor.com. Photo Credit: Rightfinancialadvisor.com.
Requirements for accessing monies tax free include, educational expenses, housing expenses ranging from rent to retrofitting existing structures to accommodate the disabled, transportation expenses, job training for those who are able to and technology expenses to assist in personal support.
Jeffrey R Silverman J.D., CFP of Center for Wealth Preservation in Syosset NY suggests the new 529 ABLE law will be quickly adopted by many families who have special needs children and adults who became disabled prior to age 26. According to Silverman, “having money contributed each year to a plan that can grow tax free over a decade or two can be quite empowering as these disabled individuals age. The compounding affect alone, coupled with a tax free aspect should be considered by many families especially those that do not have the resources to open a supplemental special needs trust”.
Organizations that help families with disabilities have responded to the new 529 ABLE plan. “We celebrate passage of this historic bill that will provide families with disabilities with what they deserve: a chance to help themselves”, said Autism Speaks President Liz Feld. “As 50,000 kids with autism age into adulthood every year, the passage of ABLE could not be timelier”.
“One of the benefits that parents and grandparents achieve is the emotional impact of finally being able to set aside dollars in the name of their special child or adult. Prior to the law’s passage, family members setting aside funds for all the other children, but excluding their special needs child and adult was a troubling event. In order to have any funds for the benefit of those special children and adults usually required hiring an attorney to open a special needs trust which was costly and for many, not a practical solution.
“There are many aspects to the new 529 ABLE plan and investors should speak with a qualified investment and legal advisor,” said Cross. “I am very passionate about assisting families with special needs children and adults and I realize it takes a specific skill set which is why we have a vetting process on our website www.rightfinancialadvisor.com to make sure advisors who interact with these families have the core financial skills to properly assist them,” Cross added.
Rightfinancialadvisor.com is a web-based algorithm that matches individual investors and their families to qualified vetted financial professionals. Rightfinancialadvisor.com is committed to matching investor core financial needs and personalities to the core competencies and personality of advisors. Visit www.Rightfinancialadvisor.com for additional information or call 631-416-8000. Rightfinancialadvisor.com office is located at 4250 Veterans Memorial Highway, Suite 420, East Holbrook, New York, 11741.