InvestABLE Indiana savings celebrates 1st year anniversary
One year ago, Indiana State Treasurer Kelly Mitchell announced the launch of the INvestABLE Indiana savings plan.
The plan was made possible by the passing of the ABLE Act of 2014. It allows for the creation of tax-advantaged savings accounts for individuals with disabilities to save for their future, and pay for disability related expenses without endangering access to vital public benefits.
The intent of these accounts is to ease financial burdens on individuals with disabilities and allow for financial savings to cover qualified living expenses including, but not limited to, education, transportation, housing and medical needs.
“Never did I imagine my work as Indiana’s Treasurer of State could have such an impact on Hoosier lives in this way,” said Indiana ABLE Authority board chair Kelly Mitchell. “Every time I am on the road, I am meeting more Hoosiers who are utilizing this program and sharing with me the way it has enhanced their lives.”
During its inaugural year, the Indiana ABLE Authority has seen exciting growth and use of the plan.
Currently, there are over 204 accounts open and over $604,000 assets under management. The average account balance is just over $3,000.
INvestABLE Indiana offers seven investment options, including a checking account option with a debit card.
Up to $15,000 per year can be saved in an account, with a maximum account balance of $450,000. For an individual receiving Social Security benefits, they can save up to $100,000 in their INvestABLE Indiana account and not risk losing their monthly benefit.
Money can be withdrawn and spent on qualified expenses or INvestABLE Indiana account holders can choose to grow their finances and create long-term savings with tax-free earnings.
Contributions and earnings in INvestABLE Indiana accounts are not subject to federal or state income tax if spent on qualified expenses, similar to a 529 college savings account.
Contributions are made with post-tax dollars.
To qualify for an ABLE account, the account owner must have the onset of disability or blindness before the age of 26 and qualify for Social Security benefits.
If they do not qualify for Social Security benefits, but still meet the age of onset disability requirement, they must have a condition listed on the Social Security Administration’s List of Compassionate Allowances, or be able to provide a physician’s certification that the disability is expected to last at least a year.
Learn more at in.savewithable.com.