Minnesotans with disabilities and their families can save for goods and services to improve their lives under the new Minnesota ABLE (Achieving a Better Life Experience) Plan, which opened this month.
The plan allows a maximum of $14,000 a year, to a total maximum of $350,000 ($100,000 for individuals receiving SSI), to be contributed to an account for an individual before the individual’s public benefits are affected. Participants can choose to put their money into what operates as a regular checking account or into one of six investment options.
The Minnesota ABLE Plan has several features:
- ABLE accounts are not limited to people with disabilities on public programs. The accounts ($up to $100,000) are exempt from eligibility consideration if people are on Medical Assistance, Supplemental Security Income or other public programs. Currently, people with disabilities may lose eligibility for public benefits once they reach $2,000 in savings.
- Earnings on accounts and distributions for qualified expenses are not counted as taxable income.
- Minnesota ABLE Plan accounts can be opened online at mn.savewithable.com. Parents of eligible minor children may open an account for their child.
- Any person can contribute to an ABLE account. Contributions can be made by check, through an employer’s payroll direct deposit, or directly from another checking or savings account.