The State of Indiana has created the INvestABLE INDIANA Program. The Indiana program is in compliance with the federal act, The Achieving a Better Life Experience Act of 2014, (ABLE). The program allows individuals with disabilities, their families and others to save for many daily disability-related expenses to a tax deferred account without limiting their ability to benefit from Supplemental Security Income (SSI), Medicaid or other federal programs. The individual’s disability must be present prior to the age of 26 and adequate documentation is required. The maximum amount that an account can grow to is $100,000.00. The maximum amount that can be contributed in a year is $15,000.00.
What are qualified disability expenses? These are any expenses that are incurred as a result of living with a disability and are intended to improve their quality of life. Qualified expenses include, but are not limited to: education, health and wellness, housing, transportation, legal fees, financial management, employment training and support, assistive technology, personal support services, oversight and monitoring, funeral and burial expenses and basic living expenses. Money spent on non-qualified expenses will be taxed at the account owner’s tax rate, and will be subject to a 10% federal tax penalty and applicable state taxes.
To find out more specific information about the program,
email the state website or call 888-609-3457. If you or someone you know could benefit from this program, I encourage you to pass the information on and also seek additional information from the state.