If an individual saves more than $2,000 a year while receiving SSI benefits, they may risk losing their government benefits such as SSI and Medicaid. However, through the Pennsylvania ABLE savings program, up to $15,000 a year can be saved, tax-free, without the risk of losing government benefits. A wide range of expenses can be paid for out of a PA ABLE account; including: educational expenses, transitional services or putting a down payment on a home or vehicle. Additional information about the Pennsylvania ABLE Savings Program can be found at: https://paable.gov/overview/
Tax Advantages of the Pennsylvania ABLE Savings Program
- Owe no federal or Pennsylvania income tax on saving’s growth when held in the account (tax deferral).
- Take withdrawals for “qualified disability expenses” and no federal or Pennsylvania income tax is owed (tax exemption).
- Entire account (savings and growth) is exempt from Pennsylvania inheritance tax.
Pennsylvania Residents: Open A PA ABLE Account – Get Exclusive Benefits
- Deduct PA ABLE contributions up to $15,000 per year from Pennsylvania taxable income (only contributions to PA ABLE accounts qualify for this tax deduction)
- Protects eligibility for PA health and disability-related benefits
- Protects eligibility for PA student financial aid
- Contributions grow PA income tax free
- Entire account is exempt from PA inheritance tax
- Entire account is protected from creditors of the account owner, beneficiary or contributor
- Account not subject to Medical Assistance (Medicaid) repayment (account owner’s estate might be)
Our law firm focuses exclusively on SSI and Social Security disability cases. To learn more about the Pennsylvania ABLE Savings Program, SSDI and SSI programs and how our disability lawyers can improve your chances for success in your disability claim, contact the Jenkintown and Philadelphia Social Security Disability lawyers of the Disability and Injury Law Offices of David R. Machek for a free consultation at: 215-886-0398 or at: http://www.disabilitylawpa.com Email: [email protected]