Area residents can now sign up for the Pennsylvania Achieving a Better Life Experience Act (ABLE) Savings Program, which provides tax-exempt accounts for individuals with disabilities and their families, according to Senator Pat Stefano (R-32).
Stefano strongly supported legislation establishing the program within the state Department of Treasury. It allows people with qualified disabilities and their families to save without jeopardizing eligibility for needed assistance.
“This program will give individuals and families more control over their financial future and help those with disabilities live an independent and fulfilling life,” Stefano said. “I strongly supported efforts to create the ABLE Savings Program and thank all the individuals and families who helped to bring about this important resource. I urge those who are eligible to enroll now.”
Modeled after college savings accounts, ABLE accounts allow individuals with qualifying disabilities and their families to save for a wide range of disability-related expenses tax-free and provides investment options offered to encourage saving private funds to support health, independence and quality of life.
PA ABLE saving accounts are excluded from eligibility determinations for Supplemental Security Income (SSI) benefits (for savings up to $100,000), other means-tested federal programs, Medical Assistance, and other state means-tested disability and health benefits programs on which individuals with disabilities must often depend.
Under the PA ABLE Savings program, eligible individuals can:
- Save up to $14,000 each year.
- Grow accounts tax-free.
- Use accounts to pay for a wide range of disability-related expenses.
- Make federal and state income tax-free withdrawals when used for qualified disability expenses.
- Open accounts that are exempt from Pennsylvania inheritance tax.
Interested families and other can visit the Department of Treasury www.paable.gov website for more information on the ABLE savings program, sign up for updates or open an account.