Late last year, Congress authorized states to set up ABLE programs, offering tax-advantaged savings accounts for people with disabilities. Even before federal guidelines were available, some states had already started their plans. IRS has promised they will have time to modify their rules if necessary.

The ABLE plans are similar to 529 plans for education, with several important differences. Like the 529s, contributions are after-tax, and earnings and distributions from the account will not count as taxable income if used for qualified expenses. Annual contributions cannot exceed the federal gift-tax exemption, currently $14,000. States may limit the total.

The differences: The beneficiary will be the account owner; each owner can have only one account; and anyone else who has signature authority over the account may have no interest in it and must administer it for the beneficiary. The accounts are for persons who became blind or severely disabled before age 26 and have met the disability standard for Supplemental Security income. The money can be used for assistive technology, transportation costs, specialized housing and job training as well as education. There may be limits if the account tops $100,000.

For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University. He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.

An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.

nickersonpa.com