“March” Into Financial Independence with IAble
Des Moines, Iowa – State Treasurer Michael L. Fitzgerald reminds individuals with disabilities they can “march” into financial independence with IAble, Iowa’s Achieving a Better Life Experience (ABLE) plan. “To qualify for federal benefits like Supplemental Security Income and Medicaid, persons with disabilities must have less than $2,000 to their name, which inhibits people’s ability to save,” said Fitzgerald, administrator of the Plan. “IAble gives them the opportunity to overcome that financial barrier and live a more independent life.”
With IAble, eligible individuals and their support systems can contribute up to $16,000 a year while still qualifying for those assistance programs.* The individual with the disability is always the account owner and, if over the age of 18 and legally capable, always in control of the funds. The money invested can be spent on assistive technology, support services, groceries, rent and any other qualified expense helping to improve their quality of life.**
“Everyone should have the ability to save,” continued Fitzgerald. “Having the means to live by yourself, afford day-to-day expenses and achieve financial freedom is a goal for everyone to embrace. IAble is helping individuals with disabilities accomplish that goal.”
Friends and families can help account owners on their path to independence by making contributions of their own. Any Iowa taxpayer who contributes to an IAble account is eligible for the $3,522 state tax deduction for 2022.***
*The Federal Annual Contribution Limit is $16,000. However, IAble Account Owners who earn income may contribute additional funds beyond the annual contribution limit.
**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.
***If withdrawals are not qualified, the deductions must be added back to Iowa taxable income by the Account Owner. Adjusted annually for inflation.