The final bill (new tax law) will contain a significant new break for disabled individuals.  Tax-free ABLE saving accounts, similar to 529 college savings plans.  Starting in 2015, states can set up ABLE programs so families can set aside funds to help the long-term disabled maintain their health, independence, and quality of life.

Nondeductible contributions to ABLEs of up to $14,000 a year will be allowed for those who became blind or disabled before age 26.  Lifetime payins would be capped at the same level as the state’s 529 plan.  Account owners would remain eligible for Medicaid.  And account balances of $100,000 or less wouldn’t affect SSI benefits.

Withdrawals would be tax-free if the funds are used for housing, education, transportation, job training and the like.  This includes payout of account earnings.