(AUSTIN) — Texas Comptroller Glenn Hegar today announced that the new Texas Achieving a Better Life Experience (Texas ABLE®) Program is open for enrollment.
Texas ABLE, based on federal and state legislation, gives Texans with disabilities and their families the opportunity to save money for disability-related expenses in a tax-advantaged account without losing their eligibility for certain public benefits such as Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI) and Medicaid.
“For too long, Texans with disabilities have been unable to work toward financial independence without endangering their benefits,” Hegar said. “Texas ABLE will help remove this barrier.”
Texas ABLE will be administered by the Texas Prepaid Higher Education Tuition Board through the Texas Comptroller’s office. The program is open to eligible Texans who experience the onset of a disability before the age of 26 and are entitled to SSI or SSDI benefits, or have a condition on the Social Security Administration’s list of Compassionate Allowances Conditions or a physician’s diagnosis of a qualifying condition.
Any eligible adult who is at least 18 years old or an authorized legal representative (a parent, legal guardian or other fiduciary) for an eligible individual can open a Texas ABLE account and use it to save up to $15,000 per year (or even more, if exceptions in the Tax Cuts and Jobs Act of 2017 apply). ABLE account funds up to $100,000 are generally disregarded for purposes of determining eligibility to receive government assistance or benefits.
ABLE account funds, including any earnings, are not subject to federal income tax if used for qualified expenses related to the eligible individual’s disability and for maintaining or improving his or her health, independence or quality of life. An eligible individual can have only one ABLE account.
Anyone, including the eligible individual, family, friends, business entities or trusts, may contribute to an ABLE account. A “gifting” feature in the online Texas ABLE system will make it easy to provide such contributions.
Texas ABLE offers three managed allocation investment options and one bank savings account option. Participants can choose the option that best meets their personal needs and savings goals.
“This is a great opportunity for those who qualify,” Hegar said. “Texas ABLE will help Texans with disabilities become more independent and give them a path toward a more secure future.”
For more information on Texas ABLE, including associated fees, or to open an account, call (844) 4TX-ABLE (844-489-2253) or visit TexasABLE.org.
