Investments for Your Children: 529 Plans and ABLE Accounts. By Lee Kramer

Should you consider 529 plan or ABLE account for your child with a disability?

Parents want to do what is best for your child. Of course, you want to provide the support your children will need now and in the future. That might include the idea of paying for your child’s education in the future. 

There are several different types of accounts that you could consider but I will focus on two popular types of accounts at this time which are 529 plan and ABLE account. This information is intended for those who have child(ren) with a disability, as the social security administration defines disability, which includes deafness.

You can choose either 529 plan or ABLE account to save and invest for your child’s education. I will expand on each for you to consider which might be a better fit for your child with a disability.

What is a 529 Plan? It is a tax-advantaged savings plan designed to help pay for education. It covers K to 12 and college costs. The money in the account grows tax-deferred until it is withdrawn. As long as the money is used for qualified education expenses, it is tax-free. For K-12 private school cost, the limit is $10,000 tax-free withdrawals. If the withdrawal is not for qualified education costs, you must pay income tax plus a 10% penalty. 529 plans are available to anyone regardless of disability.

ABLE accounts are another tax-advantaged investment but only available to those that were already disabled before turning age 26. You can open an ABLE account at any age, but only if your disability happened already before you turned 26. If you become disabled later in life, you can not use ABLE.

What is ABLE account? The Achieving a Better Life Experience Act of 2014 is a tax-advantaged savings programs for people with disabilities. The difference between a college 529 plan and an ABLE account is that ABLE is designed to help pay for education, housing, food, transportation, employment training and support, health care expenses, financial management and more.  Any withdrawals from an ABLE account that are used to cover support and maintenance for a person with a disability is tax-free. 529 plans are only tax-free for education. 

There are no federal tax deductions for contributions to either a 529 or ABLE account but some States do offer state income tax deductions. Consult with your tax advisor. 

Discuss with your financial advisor which type of account is right for you or your children and grandchildren. 

Adrianna Rocha

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
512-379-6909 FAX
info@kramerwealth.com

Since joining Kramer Wealth Managers in 2021, Adrianna Rocha has been a client service dynamo, ensuring every client interaction is seamless and delightful. She’s the go-to guru for all things client experience, handling everything from videophone chats to scheduling meetings and processing forms with a smile. Her goal? To make sure every client feels valued and well-cared-for.

Adrianna graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017 and brings nearly a decade of customer service experience to our team. She thrives on personal connections, celebrating both her achievements and those of our clients. When she’s not busy at work, you might find her indulging in her passions—dogs, houseplants, essential oils, and the tantalizing flavors of Mexican cuisine. Proud fur-mama to her adorable Aussie mix, Ziva. Adrianna brings a touch of warmth and enthusiasm to everything she does.

Q: What’s your favorite part of working with clients?

A:  I enjoy client service because it allows me to help people and make a positive impact. Using my listening skills to understand client needs and solve problems is satisfying. I love turning negative experiences positive and the daily variety of challenges.

Adrianna is not registered with Osaic Wealth.

Adrianna Rocha

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
512-379-6909 FAX
info@kramerwealth.com

Adrianna Rocha joined Kramer Wealth Managers in 2021.

Adrianna is responsible for client experiences and service. As part of the customer service team, she strives to help and provide top-notch service to our clients. As part of her role, she communicates with clients through videophone, schedules client meetings, prepares and processes forms, and gathers information for our advisors.

Adrianna Rocha graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017. Before she joined our team, she worked in the customer service industry for nearly a decade. She excels in human-to-human relations and takes pride in not only her own accomplishments, but her clients’ as well. Adrianna enjoys chatting about her slight obsession with dogs, houseplants, essential oils, and food: especially Mexican food! She is also a proud fur-mama to her beautiful Aussie-mixed pup, Ziva.

Adrianna is not registered with Osaic Wealth.

Jack Morley

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
240-379-6909 FAX
info@kramerwealth.com

Jack Morley has been a vital part of the Kramer Wealth Managers team since 2010, starting with various projects and officially joining full-time in 2013. As our go-to Account Service Specialist, Jack is the friendly face and reliable voice who ensures a smooth client experience. He’s the linchpin in client communications, handling account maintenance and bridging connections between clients and our advisory team.

A 1998 graduate of Gallaudet University with a BA in Psychology, Jack brings a wealth of customer service experience from retail and human services. His handyman skills are a bonus, making him the resident problem-solver and DIY enthusiast. Outside the office, Jack enjoys long walks with his dog Bailey.

Married for 25 years to his wonderful wife, Monica, Jack is also the devoted dad to two dynamic daughters who keep him on his toes. When he’s not walking Bailey—he’s likely tinkering on a new project or spending quality time with his family.

Q: What’s your favorite part of working with clients?

A:  I enjoy assisting clients in maintaining their accounts and ensuring there is a smooth transition in between changes being made within their accounts.

Jack is not registered with Osaic Wealth.