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Trump’s ‘big beautiful bill,’ other changes benefit ABLE accounts

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1 year ago

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A former line haul driver, Brandon Dickerson, 34, became disabled after a ruptured aneurysm caused bleeding in his brain. His sister, Geneva, is one of his caregivers.

Courtesy: Dickerson Family

Brandon Dickerson collapsed in his Louisiana home in March 2022, after suffering from a ruptured brain aneurysm. The sudden burst of a blood vessel caused bleeding in his brain. The former line haul driver went into a coma, and when he woke up, he had severe functional limitations. 

“His cognitive skills and communication skills are limited,” Geneva Dickerson, Brandon’s older sister and caregiver, recently told CNBC. Brandon, now 34, lives in a traumatic brain injury nursing home in Queens, New York. “We are able to have limited conversation. He’s starting to say sentences now, which is great.” 

Brandon’s improved speech gives Geneva hope. She is now looking into new benefits available for tax-advantaged savings accounts that may help cover therapy to support his progress.

Recent legislation, including President Donald Trump‘s “big beautiful bill,” contains provisions that bolster the use of so-called Achieving a Better Life Experience, or ABLE, accounts. These tax-advantaged accounts are designed to help eligible individuals with disabilities save and invest money without jeopardizing their eligibility for certain government benefits, such as Medicaid, Social Security Disability Insurance, and Supplemental Security Income. 

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“ABLE accounts allow for savings and contributions from family and friends, serving as a supplement when other benefits are insufficient,” said Mary Morris, CEO of Commonwealth Savers, a Virginia-based organization that manages tax-advantaged 529 education savings and ABLE programs. 

Here’s how ABLE accounts work, and what changes are in store.

How ABLE accounts work today

A federal law created the ABLE program in 2014.

Like 529 education savings plans, ABLE accounts are managed by states. Forty-six states and Washington, D.C., currently offer ABLE programs, and many state plans are open to outside residents. The Virginia-based plan ABLEnow, for example, is open to residents in every state.

Saving in these accounts will not adversely impact government benefits. Up to $100,000 of savings in an ABLE account is not counted toward the SSI resource limit. And any amount of ABLE savings up to the ABLE plan’s limit won’t count as a resource for other government benefits, including SSDI, Medicare, or Medicaid.  

ABLE accounts let the disabled plan, dream and save big

ABLE accounts grow tax-free with no federal or state income tax on withdrawals for qualifying expenses, as long as the funds are used for disability-related costs, including housing, transportation, and healthcare.

There are generally no income limits to contribute to an ABLE account for an eligible beneficiary.

However, the beneficiary must receive SSDI or SSI benefits, or have a physician’s statement that says the onset of the disability started before age 26.

More people can access ABLE accounts in 2026

Starting January 1, 2026, the ABLE Age Adjustment Act will increase age eligibility requirements from age 26 to 46, allowing millions more people to qualify.

About 8 million people currently qualify for ABLE accounts, with assets totaling about $2.5 billion, as of March 2025, according to Paul Curley, executive director at ISS Market Intelligence, a data provider for the financial services industry.

The number of assets and accounts is expected to increase by about 50% next year, he said, with an estimated 15 million people becoming eligible due to their age.

“This is a game changer,” said Charlie Massimo, a financial advisor and senior vice president at Wealth Enhancement Group in Long Island, New York. He is also the father of two 25-year-old sons with autism. “For the first time, millions of Americans with disabilities will have access to the same kind of tax-advantaged wealth-building accounts most families already have.”

Commonwealth Savers’ Morris said the wider age range “captures those young adults where a lot of debilitating illnesses really happen,” including multiple sclerosis, post-traumatic stress disorder, stroke, and certain neurological issues. Plus, at least one million more veterans could now qualify for an ABLE account, experts say. 

‘Big beautiful bill’ changes for ABLE accounts

The “big beautiful” tax and spending package that Trump signed in early July will also make permanent several tax advantages from the Tax Cuts and Jobs Act that could help make ABLE accounts more attractive to savers.

The annual contribution limit for ABLE accounts is based on the annual gift tax exclusion, which is $19,000 per recipient in 2025 and will likely increase with inflation in future years, experts say. 

A severely disabled worker may be able to contribute more than the annual limit if they or their employer is not making certain retirement plan contributions. The amount they can contribute is determined by the state that manages the plan and, in part, depends on their compensation. 

How those with disabilities can save money without losing government benefits

Under the legislation’s terms, assets from a 529 college savings plan can be rolled over into an ABLE account. 

“Let’s say you save for college for your son or daughter’s entire life, you have $100,000 or $200,000 in there, and now they have a disability later in life,” Massimo said. “Now you can really roll over the entire amount and then still put an additional $19,000 in for the annual gifting into an ABLE account.” 

For low-income savers, contributors to an ABLE account may be eligible for the saver’s credit, a tax break typically available to those who save for retirement. Starting in 2027, the annual contribution eligible for the Saver’s Credit will increase from $2,000 to $2,100, with a maximum tax credit of $1,050.

Geneva Dickerson said she’ll look into the tax advantages of ABLE accounts, but she is now focused on building funds to open an ABLE account for Brandon, to provide her brother with the services he needs to progress.

“His insurance doesn’t cover speech therapy,” she said. “It’s out of the budget. But I think with an account like the ABLE account, he can use those funds to pay for more speech therapy or for more physical therapy if the insurance doesn’t cover it.”

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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6 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Personal Finance

Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Personal Finance

Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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