Assets increased by more than $16 million in past year
Harrisburg, PA - Treasurer Joe Torsella today announced that the PA ABLE Savings Program (PA ABLE) recently surpassed the $35 million asset mark, reaching more than $36.9 million. In the last calendar year, PA ABLE assets have grown by more than $16 million and gained 1,162 accounts with 4,001 total open accounts.
PA ABLE is the largest program in the 17-member National ABLE Alliance and PA ABLE’s assets account for more than 30% of the Alliance’s total assets. PA ABLE’s more than $16 million in contributions in the last year accounts for about 27% of Alliance contributions during that time.
“Now more than ever before we are seeing the financial vulnerability of families across the Commonwealth. PA ABLE makes sure Pennsylvanians with disabilities can save and invest their own money and create financial stability. The impressive contributions and continued growth of PA ABLE demonstrates the importance of this program for Pennsylvanians with disabilities and their families.”
Pennsylvania State Treasurer, Joe Torsella
PA ABLE was launched in April 2017 and provides Pennsylvanians with disabilities and their families savings options that do not affect eligibility for important government benefits — such as Supplemental Security Income (SSI) (savings up to $100,000) and Medical Assistance. Eligible individuals can choose between six different investment options of varying risk plus an interest-bearing checking account with accompanying debit card.
PA ABLE also offers account owners tax benefits, including federal and state income tax exemption on savings growth and withdrawals for qualified disability-related expenses. Contributions up to $15,000 per year can be deducted from PA state income taxes, and PA ABLE accounts are exempt from PA inheritance tax, features unique to PA ABLE. Funds saved in PA ABLE accounts can be used for qualifying expenses such as housing, education, transportation and healthcare among others.
Federal passage of the ABLE Act of 2014 (Achieving a Better Life Experience) gave states the authority to establish ABLE account programs and was spearheaded by Pennsylvania U.S. Sen. Bob Casey. The PA ABLE Act was passed with instrumental help from Sen. Lisa Baker and Fmr. Rep. Bernie O’Neill. To learn more about the opportunity to save with PA ABLE, visit paable.gov or call 855-529-ABLE (2253). For news about PA ABLE and all Treasury programs follow the PA Treasury Department on Facebook and Twitter.