Pennsylvania residents with qualified disabilities may benefit from tax-exemption program
Pennsylvania Treasury has proposed PA ABLE Savings Program, an initiative which, if enacted, will benefit state residents with qualified disabilities and their families by permitting tax-exemptions on their savings and federal benefit protections.
According to Pennsylvania Treasury those qualified could save up to $14,000 each year and their savings would grow tax-free. Withdrawals would be exempt from federal and state income tax when used for qualified disability expenses and those accounts would also be exempt from inheritance tax.
The proposed program which is modeled on 529 Plan — education savings plan — would also exclude PA ABLE savings from eligibility determinations for Supplemental Security Income benefits — savings up to $100,000 — medical assistance, and other federal programs.
“People with disabilities and their families face many challenges, among them are planning for a financially secure future and saving for disability-related expenses,” Executive Deputy State Treasurer Christopher Craig said. “When enacted, this will provide families savings options without jeopardizing eligibility for important support programs.¨
Pennsylvania Treasury will create a online site to offer additional information and updates in www.patreasury.gov.