13-State Alliance Offers ABLE Savings Accounts to Help Persons with Disabilities
DES MOINES, IA (02/14/2017) (readMedia)-- State Treasurer Michael Fitzgerald joined 12 other state treasurers and various advocacy groups at an event in Washington, D.C. on Monday to announce a new savings partnership aimed at assisting persons with disabilities. The 13-state National ABLE Alliance is the country's largest multi-state agreement that offers low cost, high-quality investment options to eligible individuals across the nation.
The federal Achieving a Better Life Experience Act (ABLE) of 2014 authorized tax-advantaged investment accounts similar to college savings programs, such as College Savings Iowa. With ABLE accounts, persons with disabilities and their families may save up to $14,000 annually for qualified disability expenses, including but not limited to housing, transportation, assistive technology and education, among others.
In 2015, Iowa passed its version of the ABLE Act, paving the way for Iowa's plan, called IAble. IAble offers families the opportunity to plan for the future well-being of a loved one with a disability without the risk of losing their eligibility for certain federal assistance programs, like SSI.
"I have worked hard over the years to help Iowa families save for college through College Savings Iowa. Our new IAble program is a tax-advantaged plan designed to help persons with disabilities and their families save to achieve a better life experience," Fitzgerald said. "My office is pleased to provide this savings tool for today's expenses or tomorrow's needs."
IAble, similar to College Savings Iowa, offers savers a variety of investment options to best meet their goals and comfort with risk. The earnings on investments are federally tax-deferred and tax-free, if used for qualified disability expenses.* Iowa taxpayers may also deduct up to $3,239 in contributions from their adjusted gross income for 2017.**
To open an IAble account for as little as $25, visit IAble.gov. Account owners can access their accounts online at any time, and even make withdrawals from the website. For more information about IAble, call 888-609-8910 or visit IAble.gov.
For more information about the National ABLE Alliance, visit SaveWithABLE.com
*Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as applicable state and local income taxes.
**If withdrawals are not qualified, the deductions must be added back to Iowa taxable income. Adjusted annually for inflation.
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