Because of recent changes to existing law, Hoosiers with disabilities are now able to save even more under the state’s INvestABLE Indiana program.
Beginning Jan. 1, the annual contribution limit for ABLE accounts increased from $15,000 to $16,000, according to a news release from the Office of the Indiana Treasurer of State.
This increase of more than 6% will allow savers to deposit even more into their accounts and experience lower fees. The contribution limit is tied to the annual gift tax exclusion limit, which saw an increase this year.
ABLE plans have been making headlines across the country, too. The National ABLE Alliance, of which Indiana is a member, recently crossed a threshold, exceeding $250 million in program assets. That automatically reduced the program management fee from 30 basis points (0.30%) to 28 basis points (0.28%), bringing further savings to the program and Hoosiers.
“The lowering of fees comes as a direct result of more individuals enrolling in ABLE and saving for their or their loved one’s future,” said Amy Corbin, executive director of the ABLE Authority. “As INvestABLE Indiana continues to grow, it is heartening to see more individuals with disabilities achieving increased financial independence and economic empowerment.”
INvestABLE Indiana offers seven investment options, including a checking account option with a debit card. Up to $16,000 per year can be saved in an account with a maximum account balance of $450,000.
For individuals receiving Supplemental Security Income, they can save up to $100,000 in their INvestABLE Indiana account and not risk losing their monthly SSI benefit.
Money can be withdrawn and spent on qualified expenses or INvestABLE Indiana account holders can choose to grow their finances and create long-term savings with tax-free earnings. Contributions and earnings in INvestABLE Indiana accounts are not subject to federal or state income tax if spent on qualified expenses. Contributions are made with post-tax dollars.
For information about INvestABLE Indiana, including how to open an account, visit in.savewithable.com.