In our Winter 2016 newsletter, we featured an article about Iowa ABLE Accounts (now called IAble accounts). These are tax-free savings accounts for individuals with disabilities to pay for certain qualified expenses related to disability without losing eligibility for assistance programs like SSI and Medicaid. The program went into effect earlier this year. IAble (ABLE stands for Achieving a Better Life Experience) accounts can be used for short-term savings or long-term investing, depending on what best meets the needs of the account holder. Eligible individuals can open the account for themselves or an authorized individual can open an account on their behalf. Account owners can choose between six difference investment options and a checking option, and are able to change your investment plan twice per calendar year or with any new contribution. Anyone can contribute to an IAble account, including friends and family, and regardless of who contributes, the account owner retains control over the account. Iowa taxpayers who contribute to IAble accounts can deduct up to $3,239 for contributions made in 2017.
Visit https://www.iable.gov for more information and please contact us if you have any questions or are interested in having an account set up for yourself or a family member.