PA ABLE (Achieving a Better Life Experience) is a tax-advantaged savings account for individuals with disabilities and their families to save and invest their money without jeopardizing government benefits. However, it does much more than provide a financial safety net for individuals with disabilities; it empowers them to make decisions about their future and live with independence and dignity.
A PA ABLE account can be opened by an individual with a disability or an authorized individual (see “Who Can Open a PA ABLE Account?”). To be eligible, the onset of a qualifying disability must have started before age 26; however, beginning in 2026, the age of onset will increase to before 46. If a person meets the age of onset requirement and has a qualifying disability, they can open a PAABLE account regardless of their current age.
PA ABLE accounts have an annual contribution limit of $18,000 and anyone can contribute to an individual’s PA ABLE account (up to the $18,000 limit). Additional contributions above the limit may be allowed for employed account owners in certain circumstances.
PA ABLE accounts offer a checking account (with debit card) along with six investment allocation options, which range from conservative to aggressive. You can find more information about PA ABLE Investment Options, and for an introduction to investing, PATF has you covered with our Investing for My Future Guide,available for download.
The benefits of opening a PA ABLE account include:
- Provides people with disabilities a tax-free way to save for expenses while maintaining important benefits.
- Increases financial independence and control so you can plan for a more secure future.
- Expands employment opportunities and earning potential through ABLE to Work.
- An ABLE account can be transferred, without tax consequence, to an eligible sibling.
Although you do not need to be a Pennsylvania resident to open a PA ABLE account, Pennsylvanians do have some additional benefits:
- PA taxpayers may deduct contributions to a PA ABLE account up to $18,000 per year.
- Entire account is protected from creditors of the account owner, beneficiary or contributor.
- Entire account is exempt from the Pennsylvania inheritance tax.
An ABLE account can be used for qualified expenses, such as
- Most expenses related to your disability
- Assistive Technology (AT) – see us for more information on AT
- Education
- Housing and home maintenance
- Transportation
- Employment Support
- Funeral and burial expenses
The PA ABLE website has more information on eligibility, qualified expenses, government benefits, and more.
Want to know more?
PATF is hosting an informative webinar, What You Need to Know About PA ABLE! on April 10, 2024, at 6:00 pm. Diana Fishlock of the Pennsylvania Treasury Department will discuss the details of Pennsylvania’s ABLE program. ASL, CART, and Spanish interpretation is available for the webinar. Preregistration is required. Click here to register.
The Pennsylvania ABLE Savings Program is administered by the Pennsylvania Treasury Department. Before investing, please carefully read the Disclosure Statement (available at PAABLE.gov or by calling 855-529-2253) to learn more about the program, including its effect on federal and state benefits, investment objectives, risks, fees, and tax implications.