Federal ABLE Act reaches milestone

Indiana Treasurer Daniel Elliott celebrates 10 years of empowering people with disabilities with ability to save

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Last Thursday marked the 10^th anniversary of the Stephen Beck, Jr. Achieving a Better Life Experience Act (ABLE Act).

Congress passed the ABLE Act on Dec. 19, 2014, which enabled States to establish tax-advantaged ABLE accounts that make it possible for people with disabilities and their families to save and invest money for qualified expenses without losing vital public benefits, such as Supplemental Security Income (SSI) and Medicaid.

Many people with disabilities experience increased financial insecurity, and before ABLE, had minimal options to save for their or their loved one’s future. Since ABLE, more than 187,000 account owners across the country have saved over $2 billion in ABLE accounts – helping account owners to build financial resilience. Money in ABLE accounts can be spent on many of the expenses that come with living with a disability, such as assistive technology, therapies, specialized equipment, transportation, job coaching, health care, education, and more.

Indiana proudly launched its ABLE program, INvestABLE Indiana, on July 27, 2017. Since then, more than 2,100 Hoosiers living with disabilities have saved more than $12.1 million, allowing them to experience greater financial empowerment.

Elliott

“The Federal ABLE Act has made a real difference in the lives of Hoosiers with disabilities, giving them a way to save and invest without risking the benefits they rely on,” Indiana Treasurer of State Daniel Elliott said. “Over the last several years, INvestABLE accounts have helped individuals gain more independence and take control of their financial future. This anniversary is a great reminder of how far we’ve come and Indiana’s ongoing commitment to supporting these opportunities.”

For more information or to open an INvestABLE Indiana account, visit in.savewithable.com.

About INvestABLE Indiana
Indiana taxpayers are eligible for a state income tax credit of 20 percent of contributions to an INvestABLE Indiana account, up to $500 credit per year. This credit may be subject to recapture from the account owner (not the contributor) in certain circumstances, such as distributions made from an account that is terminated within 12 months, rollovers to another state’s ABLE plan, or rollovers to a 529 plan other than a 529 plan established by the State of Indiana.

INvestABLE Indiana offers seven investment options, including a checking account option with a debit card. Up to $18,000 per year can be saved in an account, with a maximum account balance of $450,000. For individuals receiving Supplemental Security Income (SSI), they can save up to $100,000 in their INvestABLE Indiana account and not risk losing their monthly benefit.

Money can be withdrawn and spent on qualified expenses or INvestABLE Indiana account owners can choose to grow their finances and create long-term savings with tax-free earnings. Contributions and earnings in INvestABLE Indiana accounts are not subject to federal or state income tax if spent on qualified expenses. Contributions are made with post-tax dollars.