PA ABLE Savings Program for Disability-Related Expenses

A PA ABLE account gives individuals with qualified disabilities (Eligible Individuals), and their families and friends, a tax-free way to save for disability-related expenses, while maintaining government benefits. Federal and state law authorized the creation of PA ABLE accounts.

Contributions

• Contribute up to $15,000 each year. This federal limit may be adjusted each year based on inflation and may be exceeded by account owners who are employed (see below).
• Contribute more with earned income. PA ABLE account owners who earn income may contribute additional funds beyond the annual $15,000 contribution limit. See the FAQs for additional information.
• Families and friends can contribute to an account. The account limit applies to total contributions and is not per contributor.
• Account maximum of $511,758. Once limit is reached, no additional contributions can be made. Interest can still be earned.
• Deduct contributions on PA income taxes. Contributions to a PA ABLE account may be deducted from state taxable income. Only contributions to a PA ABLE account qualify for the PA state income tax deduction.
• Roll over a 529 college account. Roll over money from a 529 college savings account to a PA ABLE account, up to the ABLE annual contribution limit ($15,000 in 2018). See the FAQs for additional information.

Choose Your Investment Options

You may choose to direct your contributions to one or any combination of seven investment options offered by the PA ABLE Savings Program. Six are Asset-Allocation Options with varying blends of stocks, bonds, and cash – with the combinations ranging from conservative to aggressive. The seventh is an FDIC-insured interest-bearing checking account with a debit card provided through Fifth Third Bank, National Association.

In addition to the investment fees shown on the investment option charts, there is an account maintenance fee of $15 per quarter, which may be reduced to $11.25 per quarter if you choose to have program statements and information sent electronically. For the Fifth Third Bank, N.A. checking account option there is an additional fee of $2.00 per month, which is waived if you elect to receive bank statements electronically or maintain an average monthly balance of $250. Additional bank fees may apply. See the PA ABLE Savings Program Disclosure Statement for details.

Account Control

Eligible Individuals who can enter into contracts are Account Owners with complete control of their account - a trustee or representative is not needed. To establish an account for minors or adults who lack the capacity to contract, a parent, guardian or person with a Power of Attorney must open the account.

For Account Owners who lack the capacity to contract, the Fiduciary maintains control of the account unless relinquished. Account Owners who reach the age of 21 and have the capacity to contract can request the termination of a fiduciary's authority and roll over their savings into a new account.

The Pennsylvania ABLE Act

The Pennsylvania Achieving a Better Life Experience (ABLE) Act follows federal legislation that authorizes states to create ABLE programs. Modeled after college savings accounts, ABLE accounts allow individuals with qualifying disabilities and their families to save for a wide range of disability-related expenses. The federal tax-free savings and investment options are offered to encourage individuals with a disability and their families to save private funds to support health, independence and quality of life.