HARRISBURG, PA — Pennsylvania’s ABLE savings program for residents with disabilities will transition to a new program manager this summer, a change state officials say will bring lower fees, new account tools, and expanded access for savers.
What This Means for You
- The PA ABLE savings program will transition to a new manager, Vestwell, in July.
- Account holders are expected to see lower fees and new digital tools.
- The program allows people with disabilities to save money without losing eligibility for certain public benefits.
State Treasurer Stacy Garrity announced Wednesday that the PA ABLE (Achieving a Better Life Experience) Savings Program will move to Vestwell, one of the nation’s largest providers of ABLE program management.
ABLE programs allow individuals with disabilities and their families to save money in tax-advantaged accounts to pay for disability-related expenses while maintaining eligibility for benefits such as Supplemental Security Income and Medicaid.
“Treasury is excited to team up with Vestwell to make PA ABLE work better than ever to empower Pennsylvanians with disabilities to build financial security,” Garrity said.
Changes Expected for Account Owners
The transition to Vestwell is expected to conclude in July and will introduce several changes for PA ABLE account holders.
According to the Treasury Department, improvements will include lower program fees, an updated account portal, and expanded savings tools.
Other changes planned include:
- Lower fees that officials say could reduce costs by up to 45 percent.
- A new customizable PA ABLE Visa prepaid card.
- Additional investment options for account holders.
- Simplified account management tools designed for individuals and organizations.
- A mobile application to manage accounts.
- An account platform available in 20 languages.
Vestwell provides technology and management services for several types of savings programs, including ABLE accounts, 529 college savings plans, individual retirement accounts, and employer-sponsored retirement plans.
Douglas Magnolia, president of government savings at Vestwell, said the company plans to expand the program’s digital tools and accessibility features.
“ABLE programs represent a powerful pathway to financial independence for individuals with disabilities,” Magnolia said. “We are honored to work alongside Treasurer Garrity and the Pennsylvania Treasury to support the continued growth of PA ABLE.”
About the PA ABLE Program
Pennsylvania launched its ABLE program in 2017 after legislation championed by Sen. Lisa Baker, R-Luzerne.
The program allows eligible residents with disabilities to save for expenses such as housing, groceries, assistive technology, and vehicle or home modifications.
Account holders can contribute up to $20,000 per year, though the limit may be higher for some employed participants. Contributions of up to $19,000 are deductible from Pennsylvania state income taxes, and earnings grow tax-free when used for qualified expenses.
To qualify for the program, an individual’s disability must have begun before age 46.
Program Growth
According to the Treasury Department, PA ABLE is now the fifth-largest ABLE program in the United States, with more than 12,000 accounts holding over $200 million in assets.
Officials say the program continues to expand as more residents learn about tax-advantaged savings options available for disability-related expenses.
“We are always looking for new and innovative ways to improve PA ABLE,” Garrity said. “This transition to Vestwell is going to bring big, positive changes for our current and future account owners.”
More information about the PA ABLE program is available at https://paable.gov.
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