What type of accounts are ABLE accounts classified as?

ABLE accounts, which stands for Achieving a Better Life Experience accounts, are specifically designed to help individuals with disabilities save money without jeopardizing their eligibility for essential government benefits such as Supplemental Security Income (SSI) and Medicaid. These accounts allow eligible individuals to maintain a certain amount of funds without those funds being counted as resources for means-tested programs.

The correct classification of ABLE accounts is resource exclusions only because funds in these accounts are not counted as part of the individual's total resources when determining eligibility for programs like SSI and Medicaid. This means that while the money can be used for qualified disability expenses, it does not affect the individual's resource limit imposed by these benefit programs.

In contrast, income exclusions refer to different provisions where earned or unearned income might not be fully counted as part of one's income for the purposes of eligibility for benefits. ABLE accounts do not fall under that category, as they are structured specifically to exclude funds as resources rather than income. Thus, the uniqueness of ABLE accounts as resource exclusions is what makes this classification correct.