ABLE accounts and the role of a Care Manager
A care manager plays a pivotal role in helping individuals with disabilities navigate the complexities of managing an ABLE account. They assist in ensuring that the funds in the account are used appropriately, helping individuals and their families make the most out of this valuable resource. Here's a breakdown of their key responsibilities:
1. Education and Guidance
A care manager educates the individual and their family about the purpose of an ABLE account, how it works, and the rules surrounding qualified disability expenses (QDEs). They ensure the family understands how contributions can affect eligibility for government benefits like SSI and Medicaid.
2. Assisting with Contributions and Limits
The care manager helps the individual stay within the contribution limits set for the ABLE account. They also guide individuals who are eligible for the ABLE-to-Work provision, assisting them in understanding how to contribute beyond the typical $18,000 limit based on their earned income.
3. Identifying Qualified Disability Expenses (QDEs)
Care managers work closely with the account holder and their family to identify appropriate uses for the ABLE account funds, ensuring that withdrawals are used for Qualified Disability Expenses such as healthcare, housing, education, and personal support services. This ensures the funds remain tax-free.
4. Support for Family Members or Special Need Trust Professionals
A care manager can act as a liaison between family members, financial advisors, and the beneficiary, ensuring everyone is informed and aligned in managing the ABLE account effectively. A care manager can monitor the activity of the ABLE account to ensure that the funds are being used appropriately. They may work with the individual or their family directly to develop a budget and/or track spending and make strategic decisions on how to use the ABLE account.
Maximizing the Potential of ABLE Accounts: A Care Manager's Key Role
A care manager’s role with an ABLE account extends far beyond financial oversight—they are a guide, advocate, and partner in helping individuals and their families unlock the full potential of this powerful tool for independence and financial security.
Contact us today to learn how an ABLE account can support you or your loved one on the path to greater self-sufficiency!