Indiana Treasurer Kelly Mitchell recently launched the INvestABLE Indiana savings plan, which will ease financial burdens on individuals with disabilities. It’s the state’s version of the national Achieving a Better Life Experience account program.
This plan 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 the person’s disability benefits. This will help those with disabilities by easing financial burdens and allowing for financial savings to cover qualified living expenses including, but not limited to, education, transportation, housing and medical needs.
INvestABLE Indiana offers seven investment options, including a checking account option with a debit card. Up to $14,000 a year can be saved in an account, which can have a maximum balance of $450,000. Individuals receiving Social Security benefits can save up to $100,000 without risking losing their monthly benefits.
Money can be withdrawn and spent on qualified expenses, or INvestABLE Indiana account holders can choose to grow their finances and create long-term savings with tax-free earnings.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.
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.
To learn more about the INvestABLE Indiana savings plan, visit in.savewithable.com.