The ABLE Savings Account enables people with disabilities to save money — tax-free — for their living expenses. Most importantly, it ensures their savings won’t make them lose their eligibility for federal aid programs.
Ending the $2,000 Savings Cap
Washington State’s ABLE savings account ends the $2,000 savings cap that disability and other federal benefits placed on people with disabilities. In the past, if you had over $2,000 in assets, you would lose Medicaid, Supplemental Security and other federal benefits. This made it very difficult for people with disabilities to save for their future.
Saving for the Future
With the ABLE Savings Plan, parents and adults have a special account for living and educational expenses. The money they put into the account is invested in a mix of stocks and bonds of their choosing. As the invested money grows, they will not have to pay taxes on that growth.
How Much Can You Save?
If you are not employed, you can save up to $15,000 year in your ABLE account. Depending on your employment, you may be eligible to save more.
Many Ways to Use the Savings
You can either save for the future or the short-term. At any time, you can withdrawal your money to pay for many different types of expenses. These expenses include education, rent, groceries, assisted technologies, medical expenses and more.
Who Is Eligible?
You are eligible to open an ABLE Savings account if you live in Washington state and developed your disability before you turned 26 years old. There are some disabilities the ABLE plan does not cover.
More People Need to Sign Up
While it’s estimated that more than 130,000 people in Washington state are eligible, only about 260 people have signed up as of Feb. 12, 2019. To learn more or open your ABLE Savings account, visit WashingtonStateAble.com.