Pennsylvania Treasurer Stacy Garrity announced that expanded eligibility for the PA ABLE Savings Program is now in effect.
As of January 1, Pennsylvanians whose qualifying disability began before age 46 are eligible to open a PA ABLE account. Previously, eligibility was limited to individuals whose disability began before age 26. The change follows the federal ABLE Age Adjustment Act and expands access nationwide to an estimated six million additional Americans, including approximately one million Veterans.
PA ABLE accounts allow individuals with disabilities and their families to save money tax-free without affecting eligibility for benefits such as Supplemental Security Income (SSI). Earnings grow tax-free, and withdrawals for qualified disability-related expenses are exempt from state and federal taxes.
The annual contribution limit for PA ABLE accounts is $20,000. Pennsylvania residents may deduct up to $19,000 per year in PA ABLE contributions from their state income taxes, and PA ABLE assets are exempt from Pennsylvania inheritance tax.
Since the program launched in 2017, PA ABLE has grown to more than 11,500 accounts with over $185 million saved, making it the fifth-largest ABLE program in the nation.
Since taking office, Treasurer Garrity has reduced PA ABLE account fees six times and served as an advocate for the ABLE Age Adjustment Act. She also served as the inaugural chair of the ABLE Savings Plans Network.
More information about eligibility and enrollment is available at paable.gov, by email at info@paable.gov, or by calling 855-529-2253.
