Pennsylvanians with disabilities can save up to $18,000 a year through a growing statewide program.
The PA Achieving a Better Life Experience (ABLE) program allows people with qualified disabilities to store money in a tax-exempt account. Users can withdraw their money without being taxed for anything considered a ‘Qualified Disability Expense,’ according to their website.
State officials celebrated the program surpassing $110 million in assets at Serendipity Therapeutic Riding Center. It’s a horseback riding and farm education center for people with disabilities. They teach their clients emotional and physical skills, said Founder and Executive Director Sarah Matusick.
“So, horses are highly intuitive animals,” said Matusick. “They’re not judgmental, they don’t have an agenda, they kind of meet you where you’re at. And, a lot of our clients need that type of acceptance in order to really blossom.”
Sen. Lisa Baker and Treasurer Stacy Garrity explained how therapeutic treatment is just one use of PA ABLE’s ‘Qualified Disability Expenses.’
“So, it’s not just providing for healthcare, health expenses, but the therapy [like at Serendipity] you can pay for,” said Baker.
“They can use their account money to pay for services like this — it’s very flexible. Even for groceries, for rent. Even if you had to, y’know, have a special vehicle,” said Garrity. “And so, what’s great is because there’s tremendous tax advantages. We have now over 8,400 accounts [open in Pennsylvania].”
Pennsylvanians could first open accounts in 2017, and the program’s reach is growing, according to Garrity. In 2026, the age of onset for a qualified disability will increase from 26 to 46 years old.
“Six million more Americans — which includes one million veterans — will be able now to be eligible for ABLE,” said Garrity.
Applicants still need to prove eligibility through entitlement to Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), or by self-certification of a similarly severe disability. The Social Security Administration runs SSI and SSDI. SSI is need-based, while SSDI is based on work history. Depending on the situation, people can concurrently qualify for SSI and SSDI, according to their website.
Working Pennsylvanians with disabilities can also qualify for additional benefits through the federal ABLE to Work Act. It allows some ABLE users to save up to $30,590 a year tax-free. That number is based on the federal poverty level, so it changes periodically. Users can save up to $100,000 without affecting their SSI benefits, according to the Act’s website.
Programs like PA ABLE and the ACT give disabled Pennsylvanians and their families financial agency, said Sen. Baker. Before 2017, Pennsylvianians’ economic options were limited.
“What we had [before] was a policy that disincentivized families from helping individuals with disabilities plan for their future,” said Baker. “And, the idea that you could lose your federal benefits and only have $2,000 dollars of savings, really made no sense.”
However, an ABLE user’s monthly income is still taken into account when determining their social security benefits. As of Jan. 2024, the Social Security Administration’s monthly income limits are at $2,590 for the statutorily blind, and $1,550 for the non-blind.
For more information on PA ABLE, go to their website here. Learn more about the ABLE to Work Act here.
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