By Cora Lewis
NEW YORK (AP) – Paul Safarik, 32, of Lincoln, Nebraska, has been working in the food industry since the age of 21, and has been working quickly in stores like Trader Joe to raise food and store groceries. Service restaurant is provided. With Down Syndrome revenue, I recently bought a treadmill to stay active in bad weather, helping to cover the costs of dental braces.
It’s rare, economically speaking, partly thanks to lesser known savings accounts called competent accounts, and people with disabilities can get benefits such as supplemental security income and Medicaid. You can save money by exceeding the associated $2,000 asset limit. Without an account, Safarik could have risked losing government aid if he had more than $2,000 in assets saved at one time per month.
“There’s no need to worry too much with this competent explanation,” said Deb Safarik, 71, the mother of Paul, where he lives. “I’m happy he can work and save him and that it won’t be bound by him.”
It has achieved the Better Life Experience Act, named after the 2014 law that created them, and has been made available to individuals who have been identified by the age of 26 by the time a doctor was 26. I did. Next year they will be available to them, according to Indiana Treasurer Daniel Elliott, who manages his state account, was identified before the age of 46. An estimated 8 million people nationwide are already qualified.
“Previously, the fact that individuals could only save up to $2,000 or lose benefits really limited many families,” Elliott said. “People have been forced into a position where they can’t save for their future. We can now see an average account balance (possible accounts) of between $11,000 and $12,000.”
Generally, competent accounts can total $100,000 without affecting supplemental security income. Lifetime balance limits for competent accounts in various states range from around $300,000 to over $500,000. They are managed by state finance personnel, and the majority can be set up online via the website. Some competent plans also accept paper applications.
In 2025, anyone can contribute, including account owners, friends, family, organizations, nonprofits, employers and more. In 2025, it will cost up to $19,000 per year. They may donate an additional amount equal to their annual total income. For 2025, that amount ranges from an additional $15,560 to $18,810, depending on the state in which you manage your account.
There are also tax benefits. As long as the money obtained from your account is used for “qualified disability costs,” education, education, personalized guidance and vocational training, investment returns from competent accounts are not continuing. Account holders can choose from many investment options for account funds, or save money by holding money without investing more.
Elliott said raising awareness of the account is the biggest challenge for the National Treasury Association (NAST), and he is also a secretary’s accountant.
“Many people are used to the idea that if you have a disability or have children, you could end up risking the benefits of saving money,” he said. “We reach out to people as a nation and as a nation, and say, “Look, you can actually save money now. You can save money towards buying a home.” The most difficult thing right now is to send that message. It takes more people to realize that things have changed. ”
According to NAST data, there were only 186,641 competent accounts at the end of 2024, but an estimated 8 million eligible. As age restrictions increase, accounts will be available to people whose disability could be the result of an adult accident or may have occurred later, such as after community infection.
Andrew Warren, a senior associate in policy and research at the Financial Health Network, who studies the financial situation of Americans with disabilities, said that the majority of people surveyed for the organization’s 2023 report were the ones that included these. He said he didn’t know that the account existed.
“Less than 1% of eligible individuals have these accounts,” Warren said. “Our research shows that one of the major barriers to becoming financially healthy for this vulnerable group is asset restrictions. However, with ground caseworkers and direct service providers (including There is information disconnection between the administrators of the incompetent accounts.”
What should you know about this:
How do I know if I qualify for a competent account?
Two online resources – Today’s Competent National Resource Centre – introduces questions to help you determine if you or your friends or family member are eligible.
Currently, the possible accounts are:
– People whose disabilities began by the age of 26, and
– People whose disability is “terminate or long term (>12 months)” and whose disability causes “severe and serious functional limitations.”
Qualified individuals must meet one of the following criteria:
– Due to disability, it is covered by Supplementary Security Income (SSI) or Social Security Disability Insurance (SSDI). or
– The doctor has diagnosed a disability (physical or mental).
In 2026, the age limit for competent accounts will rise to 46.
What can I do to prepare me and my family to qualify next year?
You can start educating yourself now about the account setup process. So, starting January 2026, you can quickly add money to fund your account. Accounts with individual names as of January 1st.
The Associated Press is supported by the Charles Schwab Foundation for education and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.
Original issue: February 24th, 2025, 2:10pm EST
