Amy Corbin is the Executive Director of the Indiana ABLE Authority, where she leads efforts to expand access to ABLE accounts and promote financial empowerment for individuals with disabilities and their families across Indiana.
For individuals with disabilities and their families, financial planning can feel like walking a tightrope. Saving money is essential for stability and independence, but saving too much can put critical public benefits at risk. That’s where an INvestABLE Indiana account comes in.
INvestABLE Indiana, our state’s ABLE savings program, is a savings and investment program designed specifically for people with disabilities. Also know as an “ABLE account”, this program allows eligible individuals to save money without losing important benefits, such as Supplemental Security Income (SSI) or Medicaid. So, all the money saved in an ABLE account does not count against any resource limits you or your loved one might have.
To be eligible for an ABLE account, the person must have a disability that began before their 46th birthday (this recently increased from 26 years old) and be receiving either Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), or be able to self-certify they have a significant disability. The disability must be a physical or mental impairment that is expected to last at least 12 months, or result in death. An individual may also be eligible if their disability began before age 46 and their disability is on Social Security’s List of Compassionate Allowances.
The account is owned by the individual with the disability, even if a parent, guardian, or other authorized person helps manage it.
Key features of ABLE accounts include:
- Tax advantages: Contributions are made with post-tax dollars, but earnings grow tax-free, and withdrawals are tax-free when used for qualified disability expenses. [i]
- State tax incentive: Indiana taxpayers may receive a state tax credit of 20% of their total contributions, worth up to $500.[ii]
- High savings flexibility: Those who are receiving SSI benefits can save up to $100,000 in their ABLE account. If they do not receive SSI, their total savings limit is even higher.[iii]
- Broad usage: Funds can be used for a wide range of disability-related expenses, including housing, education, healthcare, transportation, assistive technology, employment supports, and more. Even basic living expenses can be qualified!
- Individual control: In many cases, the person with a disability can manage their own account, promoting independence and autonomy.
INvestABLE Indiana offers seven investment options, as well a checking account option with a debit card. So, the money can easily be accessed at any time to help meet your, or your loved one’s daily expenses. Up to $20,000 can be contributed per year and is the total amount from all contributors. Employed INvestABLE account owners may be able to contribute additional amounts beyond that annual limit.
Recent legislative enhancements to ABLE raised the age of onset for ABLE eligibility from 26 to 46 years old. This dramatically expanded access to ABLE accounts. Now, millions more Americans can benefit from these accounts, including people who acquire disabilities later in life due to accidents, military service, chronic illness, or later-onset disabilities.
If you or someone you care for has a disability, whether starting in childhood or adulthood, an ABLE account may be an important part of a comprehensive financial plan. INvestABLE accounts can provide financial independence and peace of mind and can be a powerful step toward a more secure and empowered future. To learn more about INvestABLE Indiana or enroll please visit in.savewithable.com.
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