Harrisburg, PA - Pennsylvania Treasurer Stacy Garrity today announced new, lower fees for PA ABLE account owners. The fee reduction of two basis points was triggered after the National ABLE Alliance surpassed the $250 million asset milestone.
PA ABLE is a savings program that allows Pennsylvanians with disabilities and their families to save money without affecting eligibility for federal and state means-tested benefits, such as Supplemental Security Income (savings up to $100,000) and Medical Assistance.
“Reducing these fees keeps more money in the pockets of our PA ABLE account owners, and makes the program more affordable for everyone. PA ABLE empowers Pennsylvanians with disabilities to save their own money and gain independence. Because of our strong program, and PA ABLE account owners’ commitment to save, ABLE account owners across Pennsylvania and the entire country will now benefit from lower fees.”
Pennsylvania State Treasurer, Stacy Garrity
PA ABLE’s assets account for about 25% of total assets in the National ABLE Alliance, which is comprised of 19 state ABLE plans. Account owners will see a .02% reduction in the asset-based fee. Fees will now range from 30 to 34 basis points depending on selected investment options.
Nearly 6,000 PA ABLE account owners have saved almost $70 million in assets since the program’s inception in 2017. States were authorized to create ABLE programs with the passage of federal ABLE legislation in 2014. The ABLE Age Adjustment Act, which Treasurer Garrity strongly supports, is currently being discussed in Congress. This legislation would allow programs to expand eligibility to those whose disability was onset prior to their 46th birthday; eligibility currently excludes those whose disability was onset after their 26th birthday. The ABLE Age Adjustment Act would make ABLE accounts accessible to millions more Americans with disabilities, including nearly one million veterans.
PA ABLE accounts can be used to help pay for a variety of disability-related expenses such as day-to-day costs of groceries and transportation, or to save for long-term expensive investments such as healthcare, assistive technology or adaptive vehicles.
PA ABLE account owners pay no federal or state income tax on savings growth or withdrawals for qualified expenses. Contributions up to $16,000 can be deducted on state income taxes annually.
To learn more about how to start saving with PA ABLE, visit paable.gov or call 855-529-ABLE (2253). You can also register for an upcoming informational webinar at paable.gov/webinar.