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State treasurer lauds ABLE accounts

Tribune-Star - 8/16/2017

Aug. 16--Some Hoosiers with disabilities have had a barrier removed to allow them to build a more financially secure future through the new INvestABLE Indiana savings plan.

State Treasurer Kelly Mitchell stopped at The WILL Center in Terre Haute on Tuesday to talk about Indiana's version of the ABLE Act, and how qualifying Hoosiers will no longer have to worry about earning too much income and losing their disability benefits.

"It's definitely for parents of children with disabilities," Mitchell said. "I've had them tell me this gives them peace of mind, that they know they are going to be able to save some money to provide for their child. But it is also helpful to adults with disabilities who haven't been able to save for even normal everyday expenses such as their own home or a car or something for their business. This will now allow them to do that."

The ABLE Act -- Achieving a Better Life Experience Act -- signed into law by President Obama in December 2014 amends section 529 of the Internal Revenue Service CODE of 1986 to create tax-free savings accounts for individuals with disabilities. States were given the ability to set up their own ABLE programs, and Indiana's program was signed into law by then-Gov. Mike Pence in March 2016.

The law just went into effect in July for Hoosiers. Eligibility is limited to individuals with significant disabilities that occurred prior to age 26. The individuals must also be eligible for Social Security benefits.

"It's really important that this bill came into being for those who want to work and have extra income but are afraid of losing their benefits," said Marlene Lu, a local advocate for the disabled and president of Arc of Indiana, a community-based organization advocating for and serving people with intellectual and developmental disabilities and their families.

Speaking during Mitchell's announcement at The WILL Center, Lu told of a relative's disabled son who was able to graduate from high school, but was discouraged from getting a job because too much income would mean he would lose the disability benefits that help pay for his health and living expenses.

The financial limitation of $2,000 in savings for those receiving disability benefits is a barrier that is removed for those who qualify for an ABLE account

"It's really important that people with disabilities have the opportunity to earn money, be a tax-paying citizen and be independent living," Lu said. "It's important that they don't feel excluded, because they are often excluded from other points of life."

Mitchell said an individual may have one account, but anyone can contribute to it up to a limit of $14,000 per year. The maximum balance at any point is $100,000 that can be spent on qualified expenses such as education, transportation, employment training, assistive technology, personal support services, healthcare expenses and financial management.

The federal government passed act in 2014, and it took about 18 months to structure the program and get it through the Indiana General Assembly, Mitchell said. Every state must set up its own program and the learning curb is steep, she said.

"My office has been hard at work for two and a half years to get to this moment today, so you can understand our excitement," she said.

The development of Senate Enrolled Act 11 in the Indiana Legislature included stakeholders such as Arc of Indiana, the Family and Social Services Administration, governor's office and legislators.

The ABLE Program will be administered by the Indiana State Treasurer's Office, and by Ascensus College Savings, which also manages Indiana's College Choice 529 Savings Plans.

Following the presentation, a woman and her disabled husband met with a WILL Center staff member to talk about an ABLE account.

Joyce, who asked that her last name not be used, said she and her husband are interested in the savings plan because they are limited in what they can earn and save while maintaining her husband's eligibility for assistance.

"If you make too much, yeah, you can lose your assistance," Joyce said.

Anyone wanting to find out more about ABLE can contact The WILL Center at 1 Dreiser Square in Terre Haute, or call 812-298-9455, or go online to in.savewithable.com.

Lisa Trigg can be reached at 812-231-4254 or at lisa.trigg@tribstar.com. Follow her on Twitter at TribStarLisa.

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