The Pennsylvania ABLE Savings Program Gives Individuals With Qualifying Disabilities A Way To Save Without Risking Their SSI Benefits

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)