The United States public safety net can be a catch-22: It acts as a lifeline to basic needs for people with disabilities, but it bars people from meaningfully saving, investing and building personal wealth. Money stashed in a retirement account or brokerage account counts against the small, strict asset limits imposed by certain benefit programs such as Medicaid and Supplemental Nutrition Assistance Program (SNAP).

For years, disability rights groups lobbied lawmakers in Washington D.C. to change this. They finally succeeded in 2014 when the Stephen Beck, Jr. Achieving a Better Life Experience Act (ABLE) became law.

“There’s a huge opportunity for folks to invest long-term in these accounts,” says Thomas Foley, Director of the National Disability Institute, a Washington D.C.-based nonprofit organization focused on improving the economic well-being of people with disabilities.

“If you’ve been on SSI or federal benefits your whole life, an ABLE account might be the first opportunity you’ve ever had to invest,” adds Foley.

Read more in this article published by Bankrate.com in May 2024.