Hoosiers with disabilities will now be able to save money without jeopardizing their state and federal benefits.
Today, Indiana State Treasurer Kelly Mitchell announces the launch of its INvestABLEIndiana savings plan. The plan was made possible by the passing of the ABLE Act of 2014. It allows for the creation of tax-advantaged savings accounts for individuals with disabilities to save for their future, and pay for disability related expenses without endangering access to vital public benefits.
The intent of these accounts is to ease financial burdens on individuals with disabilities and allow for financial savings to cover qualified living expenses including, but not limited to, education, transportation, housing and medical needs.
Treasurer Mitchell said this about the new ABLE plan, “I am pleased to be able to offer such an important service to Hoosiers. With INvestABLE Indiana, individuals with disabilities, their family members and others can contribute funds to a tax-exempt ABLE account without affecting the individual’s eligibility for state and federal benefits. This program allows individuals living with disabilities an opportunity to build assets.”
INvestABLE Indiana offers seven investment options, including a checking account option with a debit card. Up to $14,000 per year can be saved in an account, with a maximum account balance of $450,000. For an individual receiving Social Security benefits, 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 Money can be withdrawn and spent on qualified expenses or INvestABLE Indiana account holders can choose to grow their finances and create long-term savings with tax-free earnings.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, similar to a 529 college savings account. Contributions are made with post-tax dollars.
To qualify for an ABLE account, the account owner must have the onset of disability or blindness before the age of 26 and be receiving Social Security benefits. If they are not receiving Social Security benefits, but still meet the age of onset disability requirement, they may still be eligible if they meet Social Security’s definition and criteria regarding significant functional impairment and can provide a letter of certification from a qualified physician.
In celebration of this milestone, the Indiana Treasurer of State and the Indiana ABLE Authority will be holding launch events around the state during the month of August.
August 11th – The ARC, Evansville
August 15th – The Will Center, Terre Haute
August 22nd – Logan Center, South Bend
August 30th – Turnstone Center, Fort Wayne
Indiana is part of the National ABLE Alliance, a partnership of states dedicated to providing individuals living with disabilities and their families with an ABLE investment product that offers multiple financial options at low cost. Ascensus College Savings manages and administers INvestABLE Indiana, as they do the state’s CollegeChoice 529 Savings Plans.
Learn more at in.savewithable.com