Late last year congress passed the ABLE act to allow for tax advantaged savings accounts to care for the future needs of disabled children. ABLE accounts (Achieving a Better Life Experience) will be set up by the states and will be funded in a similar manner to 529 plans. There is no deduction for putting money into the account, but the earnngs in the account are tax free as long as they are spent on qualified expenses. More information on the ABLE act can be found here.
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