American Funds, a family of mutual funds from Capital Group, announces the launch of ABLEAmerica, a new tax-advantaged savings plan available through financial advisors for individuals with disabilities and their families.
“People living with disabilities may face an array of financial challenges that over time can create a significant financial burden on households,” says Reagan Anderson, senior vice present at Capital Group, in a media release.
“A skilled financial advisor can help individuals and families plan for a more secure financial future. Our hope is that opening an ABLEAmerica account can help these individuals and families, working with an advisor, pay for current or shorter term expenses and save for a better future tomorrow.”
In general, ABLEAmerica accounts are available to US citizens and permanent residents with a disability or blindness that occurred before the age of 26. Financial advisors can assist eligible individuals open ABLEAmerica accounts and can also help individuals with disabilities and their families create savings and investing plans for long-term financial health.
“We are thrilled to introduce the first advisor-sold ABLE plan with our partners at Capital Group,” states Mary Morris, CEO of Virginia529, the agency that also administers the direct-sold ABLEnow program, per the release.
For an ABLE account, qualified disability expenses include, but are not limited to, the beneficiary’s basic living expenses, housing, health and wellness, transportation, education, employment training and support, assistive technology, financial management, professional services and legal fees. For the 2018 tax year, the annual contribution limit is $15,000. Each account is subject to a $500,000 account maximum, after which no additional contributions will be accepted. Accounts that have reached the account maximum may continue to accrue earnings, the release explains.
For more information, visit American Funds.
[Source(s): American Funds, PR Newswire]