Final answer:
A beneficiary of an ABLE account does not have to be on public assistance; eligibility is based on the onset of a disability occurring before age 26. ABLE accounts are designed to aid individuals with disabilities in saving money without affecting certain benefits like Medicaid or SSI.
Step-by-step explanation:
No, it is not true that a designated beneficiary of an ABLE account must be on public assistance. ABLE accounts, which stand for Achieving a Better Life Experience, are tax-advantaged savings accounts for individuals with disabilities and their families. The purpose of ABLE accounts is to help individuals with disabilities save money without losing eligibility for certain means-tested public benefits programs like Medicaid or Supplemental Security Income (SSI). However, eligibility for contributing to an ABLE account is based on the onset of a disability, not on whether someone is currently receiving public assistance.
Medicaid and Temporary Assistance for Needy Families (TANF) are examples of public assistance programs, but they are not prerequisites for having an ABLE account. Instead, to be eligible for an ABLE account, the beneficiary's disability must have begun before the age of 26. This is intended to alleviate the economic strain faced by individuals with disabilities and to provide them with greater financial security.