Financial Stress and Caregiving: How IAble Can Help
DES MOINES, IA – State Treasurer Michael Fitzgerald is participating in National Family Caregivers Month, celebrated annually in November, by encouraging a caregiver of an individual with a qualifying disability to consider IAble as a savings tool for their loved one. According to an AARP study, an unpaid family caregiver can expect to spend nearly 20% of personal income on out-of-pocket costs related to helping their loved one. “Being a caregiver can present a variety of challenges, and finances shouldn’t be one of them,” said Fitzgerald. “With an IAble account for your loved one, they can save money for disability-related expenses while maintaining eligibility for Supplemental Security Income (SSI), Medicaid and other important benefits.”
IAble is Iowa’s dedicated Achieving a Better Life Experience (ABLE) program and is designed as a savings and investment account for eligible individuals with disabilities to use on qualified disability-related expenses.* IAble account assets are excluded in determining eligibility for federal needs-based benefits such as Housing and Urban Development (HUD), SSI and Medicaid. Plus, any Iowa taxpayer contributing to an IAble account, including caregivers, can deduct up to $3,439 in 2020 from their state income taxes.**
“With an IAble account, caregivers have the ability to team up with their loved one to ensure essential expenses are paid – such as food, personal support services, housing and transportation,” continued Fitzgerald. “The individual with a disability has a sense of empowerment as the account owner, and caregivers can have a sense of peace knowing their loved one’s benefits are protected.”
For more information about IAble, visit IAble.gov. Keep up with all of the Treasurer’s programs on Facebook and Twitter by following @IowaTreasurer.
*Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as applicable state and local income taxes.
**The Federal Annual Contribution Limit is $15,000. If withdrawals are not qualified, the deductions must be added back to Iowa taxable income. Adjusted annually for inflation.