ABLE lifts PA burden

If you have a child with a physical or intellectual disability, saving for their future comes with a multitude of price tags.

If you have a child with a physical or intellectual disability, saving for their future comes with a multitude of price tags.

You have to monitor every dollar saved for them right down to the penny, otherwise, if they have more than $2,000 in assets they risk being denied or losing government benefits.

If they're over that amount, be prepared to draw down the money before applying for Social Security Disability Insurance or Supplemental Security Income.

Oh, and another thing, you must provide receipts of what the money was spent on or show proof of where it went. Simply closing a bank account is not an option.

That's where PA ABLE comes in.

The PA Achieving a Better Life Experience (ABLE) Savings Program was launched in April by the state treasury department.

It allows individuals diagnosed with a severe disability before age 26 to enroll in a new tax-free savings account specifically designed for them.

This includes my son, who is receiving the opportunity with an ABLE account to have more independence that he and others with disabilities deserve.

The account enables individuals with physical and intellectual disabilities and their families to contribute up to $14,000 a year for basic living expenses and unexpected costs without being penalized or forced to live in poverty.

Although the maximum amount over the life of the account is $511,758, Supplemental Security Income is suspended after reaching $100,000, but Medicaid is not.

Some examples the money could be used for include housing, education, transportation, legal fees and funeral and burial costs not covered by the insurance if it's related to the person's disability.

Qualified withdrawals from ABLE accounts are exempt from federal and state income tax.

Like some Special Needs Trusts, the law permits states to take any remaining assets in an ABLE account to payback Medicaid.

The good news is that Pennsylvania is the only state that chose not to enforce Medicaid payback when the disabled person dies.

There is no enrollment fee with ABLE, however the account requires an initial contribution of $25 with a $60 annual maintenance fee that is reduced if you opt for electronic delivery of your statements.

Accounts are also limited to one beneficiary and withdrawals can be made online, using a debit card, by calling or writing.

It's long overdue, but the push to include people with disabilities in the community setting is getting a shove by local legislators who are there to help.

Families of people with disabilities also need to be aware of the number of community resources that advocate and provide services to individuals with disabilities like ACHIEVA, Transitional Paths to Independent Living (TRIPIL), Association of Retarded Citizens (ARC), Fayette Resources Inc. and local behavioral health or human resource agencies.

The treasury department is encouraging questions and input on PA ABLE by calling 1-855-529-2253 or by email at info@paable.gov.

They are also planning to host a public forum tentatively set for September in Pittsburgh.