Spread Holiday Cheer by Spreading the Benefits of IAble
Des Moines, Iowa – When spending time with family and friends this holiday season, State Treasurer Michael L. Fitzgerald encourages those who are familiar with IAble, Iowa’s Achieving a Better Life Experience (ABLE) plan, to share the benefits of the program. “The holidays are about togetherness,” said Fitzgerald. “It’s a time when we come together with our loved ones to share our gratitude and love. One way to do that is to talk with family and friends who may benefit from IAble about the opportunities the plan affords to persons with disabilities.”
Administered by Fitzgerald, IAble allows eligible individuals with disabilities and their support systems to save up to $15,000 a year while still qualifying for Supplemental Security Income (SSI), Medicaid and other federal assistance programs.* Funds in the account can be used for qualified disability expenses that help to improve or maintain health, independence or quality of life.** Examples of qualified expenses include food, housing, medical bills, support services and assistive technology. “There were limited options for the disability community to save money before ABLE plans,” commented Fitzgerald. “Having a plan that offers them a means to save their money for disability-related expenses while still receiving their benefits is a huge deal for individuals with disabilities and those who support them. By spreading the word about IAble as you gather for the holidays, we can continue to help as many people as possible.”
In addition to the plan’s benefits, IAble also comes with great tax savings for the account owner and anyone who contributes to their account. When an Iowa taxpayer makes a contribution to an IAble account to help someone achieve their version of a better life experience, they are able to take a $3,474 tax deduction from their state taxable income in 2021.***
*The Federal Annual Contribution Limit is $15,000. 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.
***Adjusted annually for inflation. If withdrawals are not qualified, the deductions must be added back by the Account Owner to Iowa taxable income.