Eligible Hoosiers Can Now Open an ABLE Account — in Indiana
(Updated January 1, 2023)
Eligible Hoosiers can open an ABLE (Achieving a Better Life Experience account). An “eligible” Hoosier is a person who develops a disability before the age of twenty-six (26). The person must have had this disability for at least one year or must expect their disability to last at least a year. Importantly, this age restriction increases to age 46 on January 1, 2026.
The Indiana accounts are called INvestABLE Indiana accounts. You can view information about these accounts at https://savewithable.com/in/home.html. These accounts are 529 plans for disabled Hoosiers similar to the 529 plans for college savings.
INvestABLE accounts allow disabled Hoosiers to remain eligible for SSI and Medicaid. Earnings used for “Qualified Disability Expenses” are not subject to federal income tax.
INvestABLE accounts can be set up by a disabled person, a parent, guardian, or power of attorney. The total 2023 contribution limit is $17,000. A person can only have one account. A person can have up to $100,000 in an INvestABLE account and still receive SSI benefits, and up to $450,000 in an InvestABLE account and still receive state Medicaid benefits.
Qualified Disability Expenses include:
- Education needs;
- Housing costs;
- Employment support;
- Healthcare services for prevention and wellness; and
- My favorite, attorney fees.
There is a small cost for the administration of INvestABLE accounts. You can open an account today for your disabled child with a minimum contribution of $25.00.
Example: Mary developed a disability at age 25 and began receiving SSI payments. She has been limited to $2,000 in her accounts at the end of each month. She has had to spend money each month to remain eligible for SSI benefits. She can now put her excess funds into an INvestABLE account to save for a rainy day.
Have a current ABLE account in another state? You can download a form from the website initiating a rollover from another ABLE plan to an INvestABLE Indiana Account.
Keith P. Huffman