New PA ABLE program helps individuals with disabilities save tax-free for future needs

In a recent session of "Moms on the Money Trail" held in Pennsylvania, discussions centered on the importance of investment accounts, particularly focusing on 529 plans and the PA ABLE program. The meeting, which took place on December 5, 2024, highlighted how these financial tools can empower families to secure their children's educational futures and support individuals with disabilities.

Participants learned about the benefits of 529 plans, which allow families to save for educational expenses while enjoying tax advantages. One speaker emphasized the ease of setting up these accounts, noting that contributions can be deducted directly from paychecks, making it a seamless option for many. The speaker encouraged parents to start saving as early as possible, framing it as a crucial step toward their children's success. "Every dollar saved is more money in your pocket for educational needs," they stated, underscoring the long-term benefits of early investment.

The session also introduced the PA ABLE program, designed specifically for individuals with disabilities. This initiative allows eligible individuals to save up to $19,000 annually without jeopardizing their government benefits, such as Social Security. The speaker shared personal anecdotes, connecting the program to real-life scenarios, including friends and family members with disabilities. They explained that the PA ABLE accounts can cover a wide range of expenses, from housing to healthcare, providing much-needed financial flexibility.

A significant point made during the discussion was the upcoming expansion of eligibility criteria for the PA ABLE program. Currently, individuals must have a qualifying disability that began before their 26th birthday, but this will soon extend to those whose disabilities onset before age 46. This change is expected to benefit many more individuals, including veterans and those who may have experienced life-altering events later in life.

As the meeting concluded, participants left with a clearer understanding of how these investment accounts can serve as vital tools for financial planning. The discussions not only provided practical information but also fostered a sense of community among attendees, all eager to secure brighter futures for their families. The session reinforced the idea that proactive financial planning is not just a necessity but a legacy that can be passed down through generations.