State Treasurer Stacy Garrity is encouraging people to register for an upcoming webinar on PA ABLE at paable.gov/webinar.
Upcoming webinars are on Wednesday, Jan. 19, from 7-8 p.m.; Tuesday, March 1, from noon to 1 p.m.; and Tuesday, April 1, from 6-7 p.m.
Garrity last week announced that the annual contribution limit for PA ABLE has increased to $16,000, the first increase since 2018. The change comes as a result of changes in the IRS regulations, responding to inflation. The previous limit was $15,000.
“PA ABLE empowers thousands of Pennsylvanians with disabilities to live more independently by saving their own money without hurting their eligibility for critical services,” Garrity said. “This increase in the contribution limit expands opportunities for our friends and family with disabilities.”
PA ABLE accounts offer tax-advantaged savings options to people with qualifying disabilities, so they can save and build assets without affecting eligibility for means-tested federal and state benefits such as Supplemental Security Income (savings up to $100,000) and Medical Assistance. Savings can be used for disability-related expenses, including day-to-day expenses like groceries, rent and healthcare, or longer-term expenses like education and assistive technology.
PA ABLE offers seven different savings options, including a checking account with a free debit card. Contributions of up to $16,000 per year can be deducted on state income taxes, and PA ABLE account owners pay no federal or state income tax on account growth or qualified withdrawals.
The federal ABLE (Achieving a Better Life Experience) Act of 2014 gave states the authority to create ABLE programs. PA ABLE started in 2017, and is now the largest program in the 19-member National ABLE Alliance, accounting for more than 25% of Alliance assets. More than 5,900 PA ABLE account owners have saved over $68 million for disability expenses.
To be eligible for PA ABLE, a person’s disability must be onset prior to their 26th birthday. The ABLE Age Adjustment Act, proposed legislation in Congress that Garrity strongly supports, would increase the age of disability onset to 46.
“I urge every Pennsylvanian to reach out to their representatives in Washington to let them know the ABLE Age Adjustment Act should be passed as soon as possible,” Garrity said. “Expanding access to ABLE would help increase financial independence for millions of Americans, including an estimated 1 million veterans.”
To learn more about how to save with PA ABLE and program eligibility, visit paable.gov or call 855-529-ABLE.
