ABLEnow, Virginia’s tax-advantaged savings program for people with disabilities, launched in December 2016. Mary Morris is the CEO of Virginia529, the state agency which administers ABLEnow. She offers more information about the program and its benefits for millions of people nationwide.
What can you tell us about the community of people with disabilities in the U.S.?
To start, I think people may be surprised by the size of the community – according to the Census Bureau, more than 56 million Americans have a disability. That’s nearly one in five. So we’re talking about many individuals and families across the nation. Of course, there are many types and severities of disabilities, and there are many communities within the larger disability community. I’ve had the privilege of talking with and working with many people with disabilities and their family members and support networks as we prepared to launch ABLEnow, and I can tell you that they are incredibly dedicated and passionate advocates. They’ve worked hard to get where they are, and they want only the same rights and opportunities that the rest of us take for granted.
How does ABLEnow help people with disabilities?
ABLEnow empowers people with disabilities to achieve more independence, greater financial security and a better quality of life. For the first time, they can save and invest money without jeopardizing their federal means-tested benefits, including Medicaid. Most benefits available to people with disabilities, designed to assist them both in meeting basic needs and gaining a measure of independence, have strict income and asset limits. While ABLE programs do not address the income restrictions, they do provide a tremendous amount of assistance in moving beyond the $2,000 general asset limit cap. Now, they can contribute up to $14,000 per year to their ABLEnow account to invest for future qualified disability expenses or to have available to meet current qualified disability expenses.
What are some examples of how people with disabilities will achieve a better life?
The benefits of an ABLEnow account will evolve over time based on the age and needs of the account owner. With ABLEnow, individuals can save for short- or long-term goals – everything from assistive technology to purchasing a home or starting a business. Some individuals may use their ABLEnow account in a more transactional manner, using funds for the monthly expenses of medical costs, education and other common expenditures.
Regardless of how an account owner uses his or her account, ABLEnow gives individuals a greater sense of financial independence and a reliable tool to build the best life possible.
Who can open an ABLEnow account?
ABLEnow is open to eligible residents of any state in the U.S., so you do not have to live in Virginia to take advantage of our program. We welcome all!
The Stephen Beck, Jr. Achieving a Better Life Experience (ABLE) Act is the law that authorized states to offer tax-advantaged savings programs for individuals with disabilities. It also established the rules and requirements for ABLE programs, including eligibility. The first thing to know is that participants must have developed the onset of their disability before age 26; you can find more detailed eligibility information here.
Why is ABLEnow the best choice?
With ABLEnow, there’s no minimum contribution to open an account, no yearly minimum to maintain and no per-deposit minimum. We believe that people should be able to save what they can, when they can. Our fees are also among the lowest in the nation.
ABLEnow also offers account owners the unique benefit of the ABLEnow Card at no additional fee. This debit card gives individuals easy access to their ABLEnow account funds and the ability to make purchases without needing to transfer funds. The account also provides tools for tracking expenses. With the ABLEnow Card, individuals can find an even greater sense of financial independence.
Finally, ABLEnow is administered by Virginia529, the country’s largest college savings plan. We’re putting 20 years of experience to work for individuals with disabilities as part of our expanded mission. It’s an exciting time, and we’re honored to serve more people as they build a strong financial future.
