States mirroring Ohio’s investment program for disabled
Treasurer’s Office administers STABLE Accounts
Josh Mandel
COLUMBUS – Ohio was first in the U.S. to offer enrollment into state-managed investment accounts for individuals with disabilities and now other states are following suit.
Kentucky and Vermont are working with State Treasurer Josh Mandel’s office to launch their own programs, according to treasurer’s office spokesman Chris Berry, while out-of-Ohio residents can still open an account here, just for an extra monthly fee of $5 instead of $2.50.
The Achieving a Better Life Experience Act allows eligible individuals with disabilities the opportunity to save and invest in the public program up to $14,000 a year, without losing eligibility for benefits like Medicaid, Social Security Insurance or Social Security Disability Insurance.
The bipartisan legislation passed in Congress in 2014, was signed into law by Ohio Gov. John Kasich in 2015 and took effect in June 2016.
The accounts are not subject to federal income tax, so long as funds are spent on qualified disability expenses including educational tuition, rent and mortgages, transportation, jobs training, health insurance premiums and more.
“By assisting individuals and families with saving and investing, we are supporting persons with disabilities to maintain health, independence and quality of life,” Mandel said in a statement.
Mandel has previously reported that individuals with disabilities could potentially lose benefits if they had too much in their bank accounts.
National Disability Institute Senior Public Policy Advisor Christopher Rodriguez called the program “tax-advantaged” and congratulated Ohio in the country’s inaugural launch.
“The benefits ... will surely promote people with disabilities and their families to save for their futures and become a more significant part of the economic mainstream,” Rodriguez said.
STABLE Accounts function similarly to normal investment accounts like 529 college savings or 401K retirement accounts. Those eligible can choose different conservative to aggressive investment options.
Participants can withdraw and spend the funds as needed, but the treasurer’s office sees the program as more of a long-term investment for disability expenses.
Eligible Ohio residents will incur an asset-based fee of between .19 and .34 percent, depending on their chosen investment options. Non-Ohio residents will have an asset-based fee between .45 and .6 percent, depending.
To check for eligibility and start an account, visit www.stableaccount.com.
Kentucky and Vermont are working with State Treasurer Josh Mandel’s office to launch their own programs, according to treasurer’s office spokesman Chris Berry, while out-of-Ohio residents can still open an account here, just for an extra monthly fee of $5 instead of $2.50.
The Achieving a Better Life Experience Act allows eligible individuals with disabilities the opportunity to save and invest in the public program up to $14,000 a year, without losing eligibility for benefits like Medicaid, Social Security Insurance or Social Security Disability Insurance.
The bipartisan legislation passed in Congress in 2014, was signed into law by Ohio Gov. John Kasich in 2015 and took effect in June 2016.
The accounts are not subject to federal income tax, so long as funds are spent on qualified disability expenses including educational tuition, rent and mortgages, transportation, jobs training, health insurance premiums and more.
“By assisting individuals and families with saving and investing, we are supporting persons with disabilities to maintain health, independence and quality of life,” Mandel said in a statement.
Mandel has previously reported that individuals with disabilities could potentially lose benefits if they had too much in their bank accounts.
National Disability Institute Senior Public Policy Advisor Christopher Rodriguez called the program “tax-advantaged” and congratulated Ohio in the country’s inaugural launch.
“The benefits ... will surely promote people with disabilities and their families to save for their futures and become a more significant part of the economic mainstream,” Rodriguez said.
STABLE Accounts function similarly to normal investment accounts like 529 college savings or 401K retirement accounts. Those eligible can choose different conservative to aggressive investment options.
Participants can withdraw and spend the funds as needed, but the treasurer’s office sees the program as more of a long-term investment for disability expenses.
Eligible Ohio residents will incur an asset-based fee of between .19 and .34 percent, depending on their chosen investment options. Non-Ohio residents will have an asset-based fee between .45 and .6 percent, depending.
To check for eligibility and start an account, visit www.stableaccount.com.