HARRISBURG, PA — In a move celebrated by advocates and account holders alike, Pennsylvania State Treasurer Stacy Garrity has announced a significant reduction in fees for the state’s Achieving a Better Life Experience (PA ABLE) accounts. This marks the fourth such cut in the past three years, highlighting a commitment to making savings more accessible for Pennsylvanians with disabilities.
PA ABLE accounts offer a tax-free avenue for individuals with qualifying disabilities to save for everyday and long-term disability-related expenses without jeopardizing critical benefits like Supplemental Security Income and Medical Assistance. This initiative is part of a broader effort to provide financial independence to those who previously had limited options for saving.
Garrity, heralding the program’s success, noted, “We just finished a statewide tour celebrating the fact that PA ABLE reached $100 million in assets – and it keeps going up and up. Today, we have more than 8,700 accounts with over $118 million saved. That’s amazing, and this new fee cut is a direct result of those account owners being committed to saving for the future.” She emphasized that the fee reduction is aimed at making PA ABLE more affordable, enabling account owners to allocate more funds towards their disability-related needs.
The cumulative effect of the previous fee reductions, announced in February 2021, January 2022, and April 2023, has already resulted in savings of more than $85,000 for PA ABLE account owners. With the latest cut, annual savings are projected to exceed $80,000 moving forward, providing tangible financial relief.
Garrity’s dedication to the program is evident in her statement, “For many people with disabilities, gaining financial independence was impossible before PA ABLE – so every single dollar matters. I will never stop fighting to make PA ABLE as affordable as possible.”
PA ABLE accounts are versatile, offering seven investment options and allowing contributions of up to $18,000 annually. These funds grow tax-free at both the federal and state levels when used for qualified expenses, covering a range of needs from daily living costs to assistive technology and adaptive vehicles.
In addition to her role as state treasurer, Garrity serves as the inaugural chair of the National ABLE Savings Plans Network (ASPN), part of the National Association of State Treasurers (NAST). The network aims to bolster awareness and utilization of ABLE accounts through advocacy and collaboration, furthering the goal of financial empowerment for individuals with disabilities across the nation.
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