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ABLE ACCOUNT

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What is the PA ABLE Savings Program?

A PA ABLE account gives individuals with qualified disabilities (Eligible Individuals), and their families and friends, a tax-free way to save for disability-related expenses, while maintaining government benefits. Federal and state law authorized the creation of PA ABLE accounts. It allows people  with disabilities and their families to have greater control of their finances and to plan for a more  financially secure future. PA ABLE  savings are not counted against you for any federal needs-based benefits including medical assistance, housing assistance programs, student financial aid, and more. For SSI (Supplemental Security Income), you can save up to $100,000 without affecting your benefits. Above that, your SSI will be suspended but not terminated. However, medical assistance benefits would continue. PA ABLE accounts are PA state tax deductible, within limits. You won’t pay any federal or Pennsylvania  income taxes on any growth on your savings while they are in your ABLE account or when you withdraw funds to pay for qualified disability expenses.​ The total annual contributions by all participating individuals, including family and friends, for a single tax year is $15,000.

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What can the money in the ABLE Account be use for? ABLE accounts can pay for expenses that people have because of their disability. Expenses may include:

  • Education

  • Food

  • Housing

  • Transportation

  • Employment training and support

  • Assistive Technology and personal support services

  • Health, prevention, and wellness

  • Financial management and administrative expenses

  • Legal fees

  • Expense for oversight and monitoring

  • Funeral and burial expenses

  • Any other expenses approved by the Secretary of the Treasury under regulations

 

PA ABLE SAVINGS PROGRAM  This downloadable PowerPoint presentation goes into much more detail of how to set it up, who is eligible and what it's used for.

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Read how the PA ABLE Law came into effect and which legislators supported it

 

​Read the link of the actual federal law and keep in mind some parts are up to individual states.

https://www.congress.gov/bill/113th-congress/house-bill/647/text

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FAQ Benefits: This link also clearly states what happens to the money when the beneficiary dies, it also addresses Medical Assistance (Medicaid) and other legal protections to that money in regards to creditors. http://www.paable.gov/faqs/#benefits

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NEW  Recently reported by the PA Treasury, PA ABLE contributions are now PA state income tax deductible. Money in a PA ABLE account is free from federal and PA income tax whiled invested (tax deferral). When withdrawals are taken to pay for "qualified disability expenses", no federal tax is owed (tax exemption).

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​NEW The new tax law enacted on December 22, 2017 allowed families to use 529 money, up to $10,000 per year, to be used for elementary or high school tuition for either public, private, or a religious school. It can also be used towards educational related expenses like books, materials, tutoring and educational therapies for children who are home schooled. Up to $15,000 per year of a 529 account can be rolled into an ABLE account tax free. This provision is likely to help families who established typical college savings plans before learning that their child had a disability, proponents say. Click here to learn more.  Before the law, the money would have to be withdrawn then income taxes would be paid and a 10% penalty.

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Another change benefits employees who can now contribute up to $12,060 to their ABLE account without it affecting their eligibility for public benefits. However, they cannot be participating in a 401k  or a similar plan.

 

PA ABLE

607 South Drive, Room 529, Harrisburg, PA 17120

Call: 855-529-ABLE (2253)

Email: info@paable.gov

Website: http://www.paable.gov

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​​If you have more questions pertaining to your unique situation, sitting down with a financial professional who is experienced with the disability is a great place to start. Here are some local providers.

 

Achevia Family Trust

Where:P.O. Box 1077, Havertown, PA 19083
Call: 215-678-0609

Website: http://achievafamilytrust.org/

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1847 Financial

Thom Minger

Call: 610-784-3466

Cell: 215-237-3004

Email: tminger@1847financial.com

Website: https://1847financial.com/

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The Advocacy Alliance's Representative Payee Program is a system of financial and budgetary management for persons who have a mental illness, persons who have mental retardation, and older adults who are unable to manage their monthly Social Security benefits, other benefits and financial affairs.

Where: 744 North 19th Street, Allentown, PA 18104

Call: (877) 315-6855 or email info@theadvocacyalliance.org

Website: www.theadvocacyalliance.org

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The Attainable Savings PlanSM managed by Fidelity FAQ's

 

Ikor

Our services are client-centered and adaptive to the client’s needs, allowing the trustee, financial advisor, or institution to concentrate on the big picture of the client’s finances.

Call: 855-367-4567

Website

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Mass Mutual Financial Group Eastern Pennsylvania

Services: The Special Care Program's holistic approach begins with traditional financial strategies

including financial position, protection, investments, tax reduction strategies, retirement planning and estate planning. Their planners specialize in Life Care Planning, Government Program Integration, and Family Dynamics & Financial Resource Management.

Where: 3701 Corporate Parkway, Suite 350, Center Valley, PA 18034

Call: 610-798-2567

Website: www.easternpa.massmutual.com

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Sam Yoder

Primerica

About Primerica:

For 40 years we’ve had a simple philosophy: just do what’s right. And that starts every time we sit down with a family – like yours – to educate them about how money works and to offer products and services to help them meet their goals. Primerica helps people learn how to make their money work for them using simple financial concepts. The wealthy have used these principles for decades to achieve success, yet these concepts aren’t taught in schools. Primerica bridges that education gap, empowering the families we serve to make better financial choices and to use the products and services we offer to reach their goals.

Where: 7310 Tilghman Street, Suite 500, Allentown, PA 18106

Call: 610-442-8209

Website: http://www.primerica.com/syoder

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Sally Schoffstall

Special Education Attorney

Services: Elder and special needs planning law, guardianship, estate planning, and estate administration

Where: 2987 Corporate Ct #200, Orefield, PA 18069

Call: 610 706 0686

Website: http://www.lvelderlawattorney.com/sally-l.-schoffstall.html

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