HARRISBURG, PA — Pennsylvania has significantly expanded access to its ABLE savings program, allowing thousands more residents with disabilities to build tax-advantaged savings without jeopardizing critical public benefits.
State Treasurer Stacy Garrity announced that, effective January 1, eligibility for the PA ABLE Savings Program now includes individuals whose qualifying disability began before age 46. Previously, the cutoff was age 26.
The change stems from the federal ABLE Age Adjustment Act and is expected to make an estimated six million additional Americans eligible nationwide, including roughly one million military veterans.
“This marks a major step toward financial independence and security for our friends and neighbors with disabilities,” Garrity said in a statement. “With this eligibility expansion now in place, more Pennsylvanians can save for their future without risking critical benefits.”
PA ABLE accounts allow people with disabilities and their families to save and invest money tax-free while maintaining eligibility for programs such as Supplemental Security Income. Earnings grow without federal or state taxes, and withdrawals for qualified disability-related expenses are also tax-exempt.
The annual contribution limit for PA ABLE accounts is $20,000. Pennsylvania residents may deduct up to $19,000 per year in contributions from their state income taxes, and assets held in the accounts are exempt from Pennsylvania inheritance tax.
Since launching in 2017, PA ABLE has grown into the fifth-largest ABLE program in the nation. More than 11,500 accounts have been opened, with total savings exceeding $185 million. The program was authorized through legislation championed by Sen. Lisa Baker, a Republican from Luzerne County.
Garrity said her office has reduced PA ABLE account fees six times since she took office and noted her role as an advocate for the federal age expansion and as the inaugural chair of the ABLE Savings Plans Network, a national group focused on strengthening similar programs across the country.
“PA ABLE accounts have already made a meaningful difference in the lives of so many Pennsylvanians,” Garrity said. “I encourage everyone to explore how this financial tool can provide security and stability for themselves or their loved ones.”
More information about eligibility and how to open an account is available at https://www.paable.gov. Residents can also contact the program by email at info@paable.gov or by phone at 855-529-2253.
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