Minnesota has launched its ABLE plan. People with disabilities and their families can now set up tax-advantaged savings accounts to use for disability-related expenses that promote independence and inclusion in the community. For more information and to create an account, go to the plan’s website.
Minnesota joined a consortium with eight other states to collaborate on creating an ABLE Act program. Being part of a consortium is thought to be beneficial because it would allow the states to pool resources together, draw from a large pool of potential account holders (the nine states have a combined population of 48 million), and potentially operate the program at a lower cost.
Some additional information about Minnesota’s ABLE program, from The Arc of the U.S. and the Minnesota Department of Human Services:
- ABLE accounts are not limited to people with disabilities on public programs.
- Those on who are on Medical Assistance, Supplemental Security Income, or other public programs can have an ABLE account and still receive benefits from these programs.
- The plan allows a maximum of $14,000 a year, to a total maximum of $100,000, to be contributed to an account for an individual before the individual’s public benefits are affected.
- Earnings on accounts and distributions for qualified expenses are not counted as taxable income.
- Minnesota’s program is open to all eligible individuals nationwide.
- Any person can contribute to an ABLE account. Contributions can be made by check, through an employer’s payroll direct deposit, or directly from another checking or savings account.
- The minimum initial deposit is $25.
- Participants can choose to put their money into what operates as a regular checking account or into one of six investment options. The investment options have asset-based fees ranging from 0.34% to 0.38%.
- Minnesota charges a quarterly account maintenance fee of $15, which is discounted by $3.75 for those who receive statements electronically. For Minnesota residents, there is an additional $1.25 discount.
- Minnesota ABLE plan accounts can be opened online at the plan’s website. Parents of eligible minor children may open an account for their child.
More information about ABLE is available on The Arc Minnesota website.