NJ Law Details ABLE Accounts

NJ 529 ABLE law has a lot of restrictions

MARCH 21, 2016
Last March I wrote about the new and exciting addition to 529 Accounts called ABLE accounts for individuals with disabilities that would allow for investment accounts up to $100,000 without impacting these individuals' ability to qualify for government benefits and supplemental social security income (SSI or SSDI).  

On January 11, 2016, Governor Christie signed a bill into law allowing the use of these accounts in New Jersey beginning in October 2016.

In addition to the restrictions placed on these accounts at the federal level, New Jersey's law mandates that these accounts will be managed by the New Jersey Division of Developmental Disabilities (DDD) and that any withdrawal requests must be made in writing to the DDD with 60 days' prior notice.  No information is currently available regarding how these accounts will be invested.

Unless the NJ law is revised, if a savings vehicle is needed for an individual with a disability, I recommend an attorney draft a special needs trust.
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