How is this different from a Special Needs Trust or Pooled Trust?

An ABLE account won't replace a Special Needs Trust or Pooled Trust. There are some key differences that are meant to give people with disabilities and their families more options.

With an ABLE account:

• There are fewer expenses than setting up a trust.

• The beneficiary owns the funds and can access them for eligible expenses.

• Earnings are tax-free advantaged.

• There's a yearly limit of $18,000 in 2024 and a lifetime maximum of $400,000.

• Funds can be used for housing without affecting benefits.

With a Special Needs Trust or Pooled Trust:

• You have to set up a trust.

• The beneficiary has to get approval of the trustee to receive a disbursement.

• The earnings are taxed at trust rates.

• There are no limits on contributions or balances.

• Amounts in a Third-Party Special Needs Trust are generally not subject to a Medicaid recovery upon the death of the individual with disabilities.

• Funds can be used for housing, but benefits will be affected.