In a prior blog, it was explained how the Achieving a Better Life (ABLE) was created to allow saving for people with disabilities without disqualifying a beneficiary from government benefits. The Michigan Achieving a Better Life (MiABLE) permits funds in an ABLE account to be used for “qualified disability expenses”. Contributions to a MiABLE account are deductible (up to $10,000 for a joint tax return), the assets grow tax free (similar to a 529 account) and total contributions cannot exceed $14,000 per year.
The Michigan Department of Treasury announced that beginning November 1, 2016 customers will be able to open MiABLE accounts. Once operating, Michigan will become just the 5th state to launch an ABLE program.
If you have a disabled child or grandchild, an MiABLE account may be an ideal way to provide resources for your loved one without having to create a Special Needs Trust. See an experienced elder law attorney for more information.