State Treasurer Riley Moore today marked the 10th anniversary of the Achieving a Better Life Experience (ABLE) Act, which provided a groundbreaking financial tool for eligible people with disabilities across the country.
“This critical savings program provides individuals with disabilities the ability to achieve financial independence without the risk of losing essential federal benefits,” Treasurer Moore said. “We’re proud to say it’s grown rapidly since its inception, and we look forward to helping it empower many more West Virginians in the years to come.”
Since the bill was signed into law in 2014, ABLE savings accounts have helped people across the nation, including those in West Virginia, save and pay for essential expenses. Prior to the passage of the ABLE Act, individuals with a disability were not permitted to save more than $2,000 without being at risk of losing federal needs-based benefits, such as Supplemental Security Income (SSI) and Medicaid.
The West Virginia Legislature passed a state version of the ABLE Act in 2015, and the program launched under the State Treasurer’s Office on February 9, 2018.
Under the WVABLE program, individuals who developed their disability before the age of 26 can open what’s known as a STABLE account, which is similar to a 529 college savings account. Contributions up to $18,000 annually may be made, and for the employed beneficiary an additional $14,580 may be contributed for an annual total of $32,580. In addition to the state tax benefits for contributions, investment earnings grow tax-free and withdrawals for qualified expenses are tax-free as well.
West Virginia residents may set up WVABLE savings accounts at www.WVABLE.com. Money in a WVABLE account can be used for a wide range of qualified disability-related expenses such as medical bills, housing, transportation, education and assistive technology.
“Before the ABLE Act, individuals with disabilities were penalized if they saved too much money – this was wrong,” Treasurer Moore said. “Penalizing people for taking responsible steps toward financial independence accomplishes nothing but to keep them poor and dependent. That’s why WVABLE has been such a tremendous help.”
Since the launch of ABLE accounts, more than 186,000 accounts have been opened nationwide, with more than $2.1 billion saved for future needs with an average account balance of $11,600.
There are currently more than 850 active WVABLE accounts with more than $7.9 million in total assets under management. The average account balance now stands at $9,254 – almost five-times the previous savings amount allowed prior to passage of the ABLE Act.
“WVABLE continues to be a vital tool for families and individuals who want to create either short term savings or long-term financial security without the fear of losing essential public benefits,” Treasurer Moore said. “I’m encouraging people with disabilities and their families to open a WVABLE account and start saving today.”
West Virginia residents who developed a disability or blindness before the age of 26 and are eligible for Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) benefits, or have a signed Diagnosis Form from a licensed physician, are eligible to open a WVABLE account.
Treasurer Moore in recent years has worked with the state’s Congressional delegation to encourage passage of the Federal ABLE Age Adjustment Act. The new law will raise the age limit for the onset of a disability from before 26 to before 46 when it takes effect in 2026. It is estimated this will increase the number of those eligible for an ABLE account by 6.5 million nationwide, including one million veterans.
“We believe the ABLE Age Adjustment Act will significantly help tens of thousands of West Virginians – particularly our state’s brave veterans – who developed a disability later in life by allowing them to start saving with a WVABLE account,” Treasurer Moore said.
The ABLE Act was signed into law on December 19, 2014, allowing people with disabilities and their families to open ABLE tax-advantaged savings and investment accounts. These accounts help eligible individuals with disabilities save for disability-related expenses while maintaining eligibility for SSI, Medicaid, and other government means-tested benefits. The program has helped to improve financial security for individuals with disabilities across the United States.
WVABLE is administered by the West Virginia State Treasurer’s Office through a partnership with the Ohio Treasurer’s Office STABLE program. For more information, or to sign up for an account, visit WVABLE.com.