SIE practice questionmediumABLE Accounts
An ABLE (Achieving a Better Life Experience) account is designed for individuals who:
- AAre saving for their child's college education
- BAre saving for retirement
- CHave disabilities with onset before age 46 and want to save without jeopardizing government benefits✓ Correct answer
- DWant to invest in local government projects
Explanation
Why C — Have disabilities with onset before age 46 and want to save without jeopardizing government benefits
ABLE accounts are tax-advantaged savings accounts for individuals with significant disabilities with onset before age 46. A key benefit is that ABLE account balances up to $100,000 do not count toward the $2,000 asset limit for Supplemental Security Income (SSI) eligibility. Earnings grow tax-free and withdrawals for qualified disability expenses are tax-free.
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