West Chester, Pa (January 6, 2023) – More Pennsylvanians with disabilities and their families will soon be able to access a tax-free way to save for disability-related expenses thanks to a new law passed at the federal level, said U.S. Rep. Chrissy Houlahan and state Senator Carolyn Comitta.
The ABLE Age Adjustment Act expands ABLE program eligibility by raising the age limit for the onset of a disability from 26 to 46 beginning in 2025. The change, led by U.S. Senator Bob Casey and supported by Houlahan, will open up the program to an estimated 6 million more Americans, including one million veterans.
The Pennsylvania ABLE Program allows eligible individuals with qualified disabilities, and their families and friends, a tax-free way to save for disability-related expenses through a savings account while maintaining government benefits.
“On behalf of all Americans living with disabilities, I am proud to have put my voice and vote behind the ABLE Age Adjustment Act. This law will enable more Pennsylvanians to plan for their long-term care and disability expenses, empowering them to not only reach greater economic independence, but to do so sooner,” Houlahan said. “Personally, I am proud to celebrate this win alongside my nephew who lives with disabilities. I will continue fighting in Congress to ensure that all people have access to the same opportunities so they can provide for themselves and their families.”
“The Pennsylvania ABLE Program continues to be a success story in empowering individuals with disabilities and their families to save for future expenses without jeopardizing the aid and support they rely on,” Comitta said. “Expanding the opportunity to help more Pennsylvanians, including more veterans makes sense and is the right thing to do. I want to thank U.S. Senator Casey, U.S. Rep. Houlahan, and all those who supported this important change.”
The Pennsylvania ABLE Program allows for up to $16,000 in savings per year (this limit will increase to $17,000 starting on Jan. 1, 2023) and up to $100,000 total without impacting government benefits. Funds are easy to access and may be used for a wide range of disability-related expenses.
Pennsylvania ABLE account owners can choose from six different investment options and an interest-bearing checking account. Contributions and earnings in ABLE accounts can be used to help save and pay for short- or long-term disability-related expenses. Qualifying expenses include education, housing, transportation, assistive technology, health care, financial management, and more.
Since being established five years ago, nearly 6,300 Pennsylvanians have opened ABLE accounts and saved more than $72 million for disability expenses, according to the Pennsylvania Treasury. And the Pennsylvania ABLE Program is one of the largest, and fastest growing in the country, accounting for nearly 25 percent of the total assets of the 18-member National ABLE Alliance.
Eligible individuals can begin saving by enrolling in an account at paable.gov
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