IAble Reaches New Heights with $5 Million in Assets
DES MOINES, IA (06/09/2020) (readMedia)-- State Treasurer Michael Fitzgerald announces Iowa's Achieving a Better Life Experience program, IAble, has reached $5 million in assets since its inception three years ago. "IAble is designed to provide individuals with disabilities and their families the opportunity to plan for their financial well-being," Fitzgerald said. "I enjoy seeing members of the community take advantage of this opportunity because I know they are investing in a better life experience for themselves or a loved one."
IAble offers individuals with disabilities and their families the opportunity to save money while maintaining their federal benefits such as Supplemental Security Income (SSI) and Medicaid. Prior to IAble, individuals with disabilities risked the loss of these benefits if they saved more than $2,000. Now they can save up to $15,000 per year in an IAble account and use the funds to pay for qualified expenses such as education, healthcare, housing, assistive technology and more.*
In addition to the ability to save and maintain federal benefits, there are also tax-advantages of IAble plans. Earnings on IAble accounts are federally tax-deferred and state tax-free, if used for qualified disability expenses. Any Iowa taxpayer who contributes to an IAble account, not just the account owner, can deduct up to $3,439 in contributions from their 2020 adjusted gross income.**
Over the course of the last year, IAble more than doubled its assets and has established over 770 accounts with an average account size of $7,012. "We are just reaching the surface of what this plan can achieve. I look at the future with anticipation for the great things coming our way," said Fitzgerald. "Together we can provide a future that is financially secure for individuals with a disability and their loved ones."
*Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as applicable state and local income taxes.
**If withdrawals are not qualified, the deductions must be added back to Iowa taxable income. Adjusted annually for inflation.