Those with an ABLE savings plan can set aside money, invest it, and use tax deferred growth for eligible expenses.
Indianapolis — Living with a disability can be expensive due to costs such as support services and adaptive transportation.
As such, Indiana is one of the states offering ABLE savings plans. This account allows people with disabilities to defer taxes and have more money to pay for their living expenses.
who is using the account
Everyone learns a little differently. For Claire VanWassenhove, it means doing.
“I do my best when someone teaches me how to do something, otherwise learning it aloud just doesn’t suit me,” VanWassenhove said. rice field.
25-year-old VanWassenhove has autism and attention deficit hyperactivity disorder.
When she received these diagnoses a few years ago, she realized just how much she was spending.
“Where I get tested, it’s going to be thousands of dollars,” Van Wassenhove said. [my] weight. “
In addition to work, she signed up for an INvestABLE account.
What is an ABLE account?
Indiana is one of 46 states that offer this savings plan.
If you like the plans in another state more than Indiana, you can open an account as long as the state accepts foreign residents.
more: Compare State ABLE Account Programs
For example, Indiana welcomes non-resident participation in its programs, while Florida does not.
The ABLE savings plan works like the 529 college plan.
A person with a disability that exists before the age of 26 can set aside money, invest it, and use tax deferred growth for eligible expenses.
There are penalties for spending money on non-covered expenses.
But Amy Corbyn, of the Indiana Department of Able, said the qualifications are broad.
“It has to be related to living with some form of disability and improving your health, independence, or quality of life,” Corbyn said.
This includes but is not limited to housing, transportation, health and wellness, and education.
Corbyn added that signing up for an account does not preclude eligibility for other benefits.
“If someone is on SSI or Medicaid, resources are limited to $2,000, but with an ABLE account, you can go over the $2,000 resource limit and save money.”
The annual contribution limit is $16,000 unless you are working. Then you may be able to add more. Family and friends can also donate.
This plan will help VanWassenhove cover the costs of future art classes.
