What does the ABLE Act do?
It gives states the opportunity to develop tax-advantaged savings programs for eligible people with disabilities. These saving programs provide the opportunity for people with disabilities to maintain eligibility for federal and state benefits while saving money to cover qualified disability expenses. For Supplemental Security Income (SSI) purposes, the first $100,000 saved in ABLE account is disregarded for the purposes of the $2,000 asset limit.
Contributions to ABLE programs are capped by the federal ABLE Act to the federal gift tax exclusion, currently $17,000 per year.
Contributions are accepted by the Maryland ABLE program up to a maximum account value of $500,000, as of December 1, 2018.