How IAble Helps Disabled Iowans

Individuals with disabilities face a variety of challenges; pursuing financial freedom shouldn’t be one of them.

Achieving a Better Life Experience (ABLE) accounts help individuals with disabilities and their support systems save for Qualified Disability Expenses while maintaining their eligibility for crucial assistance programs, such as Supplemental Security Income (SSI) and Medicaid. For the first time, individuals with disabilities can set short- and long-term financial goals with the help of ABLE accounts.

IAble is Iowa’s ABLE plan and is administered through the office of the State Treasurer. Here are some key highlights the Plan has to offer:

Protection

Yes, it’s true - IAble account assets are disregarded from federal means-tested benefits. SSI recipients can protect up to $100,000 in an IAble account and continue their eligibility to receive benefits. Any amount saved in an IAble account is disregarded from eligibility for Medicaid, Supplemental Nutrition Assistance Programs (SNAP), Housing and Urban Development (HUD) and the Free Application for Federal Student Aid (FAFSA).

Flexibility

IAble provides six Investment Options and a Checking Account Option. This gives Account Owners flexibility to choose how they want to invest their money, or choose to have it available at the swipe of a debit card (or both)! There is also a wide variety of expenses Account Owners can pay for with their savings. From paying for basic living expenses to purchasing a home, the list of Qualified Disability Expenses is extensive.

Tax Savings

IAble Account Owners and their support systems also benefit from tax savings. Earnings on investments are federally tax-deferred and tax-free, if used for Qualified Disability Expenses. Iowa taxpayers can deduct up to $4,028 in contributions to an IAble account from their Iowa income taxes in 2024. This is adjusted annually for inflation and is not limited to the Account Owner – any Iowa taxpayer who contributes is entitled to the deduction.

Support

Of course, every individual’s situation is different. If an Account Owner is unable or unwilling to open their own Account, a variety of individuals may have the chance to open an Account on their behalf and act as an Authorized Individual.

To learn more about IAble, visit the program's website.

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