Friday, August 14, marks the third annual National ABLE Savings Day, when ABLE savings programs across the country highlight the benefits the accounts provide to people with disabilities.
The Alabama ABLE Savings Plan allows qualified individuals with disabilities and their families to save for the future while maintaining eligibility for federal means-tested benefits such as Supplemental Security Income and Medicaid.
“An Alabama ABLE account gives those with disabilities and their families the power to save and enhance their quality of life,” Alabama State Treasurer Young Boozer said. “Every person deserves the opportunity to reach their goals and live with financial freedom.”
According to a press release from the state treasurer’s office, ABLE accounts can help individuals with disabilities and their families build financial stability by allowing them to save and invest for expenses associated with a disability.
The accounts are designed to promote independence, encourage employment and improve quality of life. Contributions can come from employment income, family members, friends and other sources.
Earnings on ABLE accounts are tax-deferred, and withdrawals are tax-free when used for qualified disability-related expenses. Alabama residents may also deduct contributions to an Alabama ABLE account from state taxes, up to $5,000 per filer each year.
More information about the Alabama ABLE Savings Plan and eligibility requirements is available at www.alabamaable.gov.
