Minnesota opens new savings plan for people with disabilities to improve lives: Sen. John Hoffman authored the ABLE Act, which creates savings accounts available to the public
ST. PAUL, MINN — Minnesotans with disabilities and their families can save for goods and services to improve their lives under the new Minnesota ABLE (Achieving a Better Life Experience) Plan, which opened this month. Sen. John Hoffman (DFL-Champlin) authored the ABLE Act in 2015, and is thrilled to see the legislation open up new doorways for Minnesotans with disabilities.
“This legislation is a long overdue recognition of the profound and significant extra costs people with disabilities must endure. The Minnesota ABLE Act provides some hope and is a vehicle by which families with young people with disabilities may avoid living at near poverty levels. We’re starting to put people first – and that’s a very important step in the right direction,” said Sen. Hoffman.
The plan allows a maximum of $14,000 a year, to a total maximum of $100,000, to be contributed to an account for an individual before the individual’s public benefits are affected. Participants can choose to put their money into what operates as a regular checking account or into one of six investment options.
The Minnesota ABLE Plan has several features:
- ABLE accounts are not limited to people with disabilities on public programs. The accounts are exempt from eligibility consideration if people are on Medical Assistance, Supplemental Security Income or other public programs. Currently, people with disabilities may lose eligibility for public benefits once they reach $2,000 in savings.
- Earnings on accounts and distributions for qualified expenses are not counted as taxable income.
- Minnesota ABLE Plan accounts can be opened online at mn.savewithable.com. Parents of eligible minor children may open an account for their child.
- Any person can contribute to an ABLE account. Contributions can be made by check, through an employer’s payroll direct deposit, or directly from another checking or savings account.
Ascensus College Savings is the firm that will administer the Minnesota ABLE Plan. People who are interested in the Minnesota ABLE Plan may visit mn.savewithable.com or call 888-609-8872.