Iable helps people with disabilities save for their expenses

Iowa State Treasurer Michael Fitzgerald celebrates ABLE to Save Month, a national campaign recognized each August, by raising awareness of Iable. “Financial freedom is something most people hope to achieve in their adult lives,” Fitzgerald said. “However, some people, such as those living with disabilities, face more barriers than others. That’s what Iable is all about: helping them overcome those barriers and become financially independent.

IAble, Iowa’s Achieving a Better Life Experience (ABLE) plan, allows eligible people with disabilities to save money above the asset thresholds imposed by federal programs such as Supplemental Security Income ( SSI) and Medicaid. Up to $16,000 can be paid into an Iable account each year, and the funds can be spent on short-term expenses, like food and commuting, or long-term investments, like assistive technology and support services. The federal annual contribution limit is $16,000 in 2022. Iable account holders who earn income may exceed the annual contribution limit by an additional $12,880 in 2022, which is adjusted annually by the federal government. Gains on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as applicable state and local income taxes.

Account holders will continue to receive monthly benefit payments, as funds in an Iable account are not considered when determining eligibility for need-based programs.

“ABLE to Save Month aims to disseminate information to families who could benefit from saving with an ABLE plan,” Fitzgerald continued. “It is my mission, now and always, to raise awareness of this important life-changing plan. Whatever your version of a better life experience, Iable can help you achieve it.

For more information on Iable, click here.