Unlocking Financial Empowerment with an MN ABLE Account

If you're seeking financial stability and long-term security for yourself or a loved one with a disability, look no further than MN ABLE accounts. These tax-advantaged savings plans, supported by the federal government, provide a pathway to financial independence and enhanced quality of life.

Benefits of an MN ABLE Account

• Tax-Free Savings and Earnings: Earnings on your investments grow tax-free, federally and in most states, providing a substantial advantage over traditional savings accounts. Source: ABLE National Resource Center

• Supplemental Income: Contributions to an MN ABLE account do not count against eligibility for Supplemental Security Income (SSI) or Medicaid benefits. Source: Social Security Administration

• Estate Planning Tool: MN ABLE accounts can be designated as a qualified disability trust, preserving assets for future care and minimizing estate taxes. Source: Internal Revenue Service

  

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Account Eligibility and Contributions

To qualify for an MN ABLE account, the beneficiary must meet certain eligibility criteria, including:

• Disability Onset: Disability must have occurred before age 26.
• Type of Disability: Disability must be expected to last for at least 12 months or result in death.
• Income Limit: Individuals with income exceeding $22,113 in 2023 are not eligible for direct contributions. Source: Minnesota Department of Human Services

Contributions to an MN ABLE account are limited to $16,000 per individual in 2023. However, additional contributions are allowed if the beneficiary meets certain criteria, such as working and earning income. Source: Internal Revenue Service

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Success Stories

• John: John, a young man with Down syndrome, used his MN ABLE account to save for his future care expenses. The tax-free earnings on his investments have significantly increased the value of his savings, providing him with financial security and peace of mind.
• Mary: Mary, a middle-aged woman with multiple sclerosis, used her MN ABLE account to supplement her income. The earnings from her investments have allowed her to maintain her independence and live with dignity, despite her disability.
• David: David, a veteran with a traumatic brain injury, used his MN ABLE account for estate planning. The funds in his account will be available to cover his future care needs, ensuring his financial well-being for the rest of his life.

FAQs About MN ABLE Accounts

Can I open an MN ABLE account for a child with a disability?

Yes, you can open an MN ABLE account for a minor child with a disability. The child's parent or legal guardian must manage the account until the child reaches legal age.

What types of investments are allowed in an MN ABLE account?

Most MN ABLE accounts offer a range of investment options, including mutual funds, stocks, and bonds. The specific investments available will vary depending on the provider you choose.

How can I find more information about MN ABLE accounts?

You can visit the Minnesota Department of Human Services website for more information about MN ABLE accounts and how to open one.