Tax-Free Savings Accounts for People with Disabilities Now Available, Says Toohil
HARRISBURG – Tax-free savings accounts aimed at helping people with disabilities save money for future care and services are now available through the Pennsylvania Treasury, Rep. Tarah Toohil (R-Luzerne) announced today.
The PA ABLE (Achieving a Better Life Experience) accounts are structured similar to tuition savings accounts and allow people with disabilities, their family members and friends to contribute up to $14,000 per year to a maximum account limit of $511,758. Once the limit is reached, accounts can continue to earn interest.
Withdrawals from the account will be exempt from both state and federal income taxes as long as the funds are used for “qualified disability expenses.” These include, but are not limited to, education, housing, transportation, employment training/support and assistive technology.
To receive the benefits of PA ABLE, the qualifying disability must have started prior to age 26. Qualifying disabilities are demonstrated by:
• Entitlement to Supplemental Security Income (SSI) benefits based on blindness or disability.
• Entitlement to Social Security Disability Insurance (SSDI) benefits based on blindness or disability.
• Self-certification of a similarly severe disability, if not entitled to SSI or SSDI.
For additional information or assistance, contact Toohil’s district office at (570) 453-1344. A link to additional information about the program, as well as access to downloadable forms, is also available at her website at RepToohil.com
Representative Tarah Toohil
Pennsylvania House of Representatives
Contact: Rep. Toohil’s Office