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July 2, 2018
Achieving
a Better Life Experience (ABLE) governing board announces program that could help
an estimated 50,000 Washingtonians save for care-related expenses without
losing disability benefits.
OLYMPIA, Wash. —
The Washington State ABLE governing board announced that a new plan to help
people with disabilities save for related care expenses without fear of
disqualification from essential public benefits will launch by the end of this
month. An estimated 50,000 Washingtonians could benefit from enrolling in an
ABLE account.
ABLE is a
tax-advantage savings plan that will allow people with disabilities and their
families to save for disability-related expenses without losing crucial
benefits, such as Medicaid and Supplemental Security Income (SSI). Currently, people
are disqualified for those benefits when their assets reach $2,000. That will
no longer be the case when funds are deposited into an ABLE account.
“With the
launch of this historic savings program, Washington is opening the door to
financial independence for persons with disabilities so they can pursue
educational opportunities and lead a full life,” said Washington State Rep. Christine
Kilduff (D-University Place), prime sponsor of the state’s ABLE legislation.
“I’m proud of the work we’ve done to make this a reality.”
Through ABLE,
people can set aside money for long-term savings, through several investment
options, or for spending, through a secured option. Any earnings in an ABLE
account are tax-free if used for qualified expenses including education,
housing, assistive technology, personal support services and other disability-related
expenses.
“The freedom to
save your own money is so basic,” said Sen. Maureen Walsh (R-Walla Walla), a
sponsor of the 2018 Washington ABLE legislation. “Unfortunately, for too long
people with disabilities have been denied that basic opportunity. With the
launch of the Washington State ABLE Savings Plan, parents will be able to save
for their children's future, and adults with disabilities can save for the
things that will help them build the lives they choose.”
The Washington
State Department of Commerce and BNY Mellon Sumday Administration are partners
in developing and managing the web-based investment and saving program.
Strengthening communities by helping all
Washingtonians
“Offering
opportunities for Washingtonians off all types of abilities to thrive, helps to
strengthen our communities,” said Commerce Director Brian Bonlender.
“With ABLE savings plans, people who depend on life-saving assistance from
Medicaid and SSI will have other options to meet their financial needs.”
Individuals who
have a significant disability prior to age of 26 are eligible for an account.
Eligibility is based on the Social Security Administration’s definition of
disability, which includes physical, mental and intellectual or developmental disabilities.
Washington
state residents who enroll in the ABLE program are eligible to waive the $35
annual account maintenance fee through June 30, 2019. Additionally, anyone can
contribute to an ABLE account up to the annual gift tax exclusion of $15,000.
Frequently, people
with disabilities who receive public benefits cannot receive gifts from family
members for their birthdays or holidays because that gift puts the individual
over the resource limit and terminates their benefits, explained Peter Tassoni,
state administrator for the Washington State ABLE program. “ABLE accounts solve
this dilemma,” he said.
The maximum
account balance for ABLE plans in Washington is $500,000. However, once an
account exceeds $100,000 it starts to count against the $2,000 asset limit for
SSI. All other means-tested benefit programs in Washington state exclude the
ABLE account balances regardless of the amount.
Strategic
partner BNY Mellon Sumday Administration will host a website and mobile app to
open and manage accounts. As program manager, they will offer customer service
by representatives trained to work with people with disabilities, and keep
account records for the plan.
Washingtonians
can enroll in the Washington state ABLE program at the end of July by going to
the website www.washingtonstateable.com
and following the instructions on the site.
For more
information about ABLE accounts in general, visit the ABLE National Resource
Center’s website at www.ABLEnrc.org.
# # #
Contacts:
Penny Thomas, Commerce Press Office, 206-256-6106
Peter Tassoni, Disability Workgroup Manager, 360-725-3125
Twitter: @WAStateCommerce
Facebook: facebook.com/wastatecommerce
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