ABLE Accounts: INvestABLE Indiana Offers Savings & Investment Options for Hoosiers with Disabilities
written by Amy Corbin, Executive Director, Indiana ABLE Authority
There is no question that living with a disability can come with increased financial challenges. Increased expenses related to additional medical needs, adaptive equipment, and personal support services (just to name a few) can make it difficult to save money. Additionally, if an individual is receiving benefits such as SSI (Supplemental Security Income) or Medicaid, they are limited on how much they can save. Having an INvestABLE Indiana account offers some relief to this situation.
INvestABLE Indiana is Indiana’s qualified ABLE savings program that provides a unique opportunity for financial empowerment for qualified individuals with disabilities.
The money saved in an INvestABLE Indiana account doesn’t count as a resource when determining eligibility for vital means-tested benefits such as SSI, Medicaid, and even housing benefits. The savings are tax-advantaged and can be used for any expense that can improve the account owner’s health, independence or quality of life.
Since its inception, INvestABLE has been providing eligible Hoosier account owners the ability to save well beyond what is typically a $2,000 resource limit for many benefits, with a current average account balance of over $8,000. The Plan offers a variety of savings and investment options, designed to meet the unique needs of account owners. Participants also have access to an FDIC-insured checking option with a debit card.
Under the current rules, the disability must have been present before the age of 26, though the ABLE Age Adjustment Act seeks to increase the age of onset from 26 to 46 years old. There is also only one account allowed per owner, but anyone can contribute. Up to $15,000 per year can be contributed from all combined sources. However, through the advantages of ABLE to Work, eligible account owners can contribute amounts in excess of the annual $15,000 limit and even direct deposit earnings into their account, which can help to accelerate asset accumulation.
The motivation behind the creation of ABLE accounts and Indiana’s own INvestABLE savings plan is to allow people with disabilities the ability to save as much as possible without losing access to their benefits. INvestABLE Indiana is providing a necessary financial resource to individuals and families across the state.