Treasurer Stacy Garrity Announces Fee Reduction for PA ABLE Accounts
National ABLE Alliance surpasses $150 million asset milestone
Harrisburg, PA - Treasurer Stacy Garrity announced today that Treasury’s PA ABLE program will cut fees because the National ABLE Alliance – of which Pennsylvania is a leading member – met a $150 million asset milestone.
PA ABLE helps Pennsylvanians with disabilities and their families save without affecting eligibility for federal and state benefits, such as Supplemental Security Income (SSI, savings up to $100,000) and Medical Assistance.
“PA ABLE is a tremendous program, and the commitment that Pennsylvanians have shown to saving with PA ABLE is remarkable. I’m thrilled to announce that because of their commitment – and the success of similar programs in other states – administrative fees are being reduced, which will allow them to save even more.”
Pennsylvania State Treasurer, Stacy Garrity
PA ABLE is the largest program in the 18-member National ABLE Alliance, accounting for nearly 30% of the Alliance’s asset pool. PA ABLE currently has 4,582 accounts with $47.3 million in assets.
Because members of the National ABLE Alliance met the $150 million milestone, fees will be lowered by 2 basis points, or .02%.
The PA ABLE Program offers account owners seven different tax-advantaged savings options, including an interest-bearing checking account with an accompanying debit card. PA ABLE account owners pay no federal of state income tax on savings growth or withdrawals for qualified disability-related expenses. Contributions up to $15,000 per year can be deducted on state income tax benefits — a benefit exclusive to PA ABLE.
PA ABLE accounts can be used for a large variety of qualified disability-related expenses such as housing, education, health care, transportation, assistive technology and more.
PA ABLE launched in April 2017 and has been growing ever since. Federal passage of the ABLE (Achieving a Better Life Experience) Act of 2014 gave states the authority to create their own ABLE account programs and was spearheaded by Pennsylvania U.S. Sen. Bob Casey. The PA ABLE Act was passed with leadership from Sen. Lisa Baker and former Rep. Bernie O’Neill.
For more details about eligibility and to learn how to save with PA ABLE, visit paable.gov or call 855-529-ABLE (2253). Follow the Pennsylvania Treasury Department on Twitter for more information on all Treasury Programs or visit patreasury.gov.