About ABLE Utah
What is a ABLE Utah account?
ABLE Utah is an investment account available to eligible individuals with disabilities. ABLE Utah is made possible by the federal Achieving a Better Life Experience (“ABLE”) Act. ABLE Utah allows individuals with disabilities to save and invest money without losing eligibility for certain public benefits programs, like Medicaid, SSI, or SSDI. Earnings in your ABLE Utah account are not subject to federal income tax, so long as you spend them on “Qualified Disability Expenses.”
ABLE Utah accounts have some similar features to normal bank accounts, but they are not checking or savings accounts. ABLE Utah accounts are investment accounts, similar to 529 college savings accounts or 401(k) retirement accounts. When you deposit money into your ABLE Utah account, your money will be invested in different options that you choose. While you can still withdraw and spend your money whenever you need it, ABLE Utah accounts also allow you to grow your money and to save long-term for disability expenses.
Federal and State ABLE Legislation
The Achieving a Better Life Experience ("ABLE") Act was passed by Congress in December of 2014. It is the federal legislation that allows families and individuals with disabilities the opportunity to create tax-advantaged accounts that can be used to help maintain health, independence, and quality of life.
Utah Senate Bill 292 implements the federal ABLE Act in Utah. The Office of Workforce Services administers ABLE Utah accounts.
The Internal Revenue Service (IRS) has provided proposed regulations for ABLE Utah accounts. These proposed regulations offer guidance to states, beneficiaries, and other interested parties. To read the proposed regulations, visit this link.