The Senate approved the ABLE Act last night and sent it to the President. Here's a description of ABLE:
Modeled after tax-free college savings accounts, the ABLE bill would amend the federal tax code to allow states to establish the program.
To qualify, a person would have to be diagnosed by age 26 with a disability that results in "marked and severe functional limitations"; those who are already receiving Social Security disability benefits would also qualify. Families would be able to set up tax-free accounts at financial institutions, depositing up to $14,000 annually to pay for long-term needs such as education, transportation and health care.
The contributions would be in after-tax dollars but earnings would grow tax-free.
The ABLE accounts would be able to accrue up to $100,000 in savings without the person losing eligibility for government aid such as Social Security; currently, the asset limit is $2,000. Medicaid coverage would continue no matter how much money is deposited in the accounts.