Indiana State Treasurer Kelly Mitchell promoted a new program to South Bend residents that allows someone with a disability, or a parent of a child with a disability, to create a savings account with special tax advantages. Mitchell, along with staff were available to answer questions regarding the program at the Logan Center following the presentation.
Before this program, Hoosiers with disabilities could only save 2,000 dollars a year before losing tax benefits. That number is now to 14,000 dollars a year, up to a cap of 450,000 dollars per lifetime.
Mitchell said the program, called InvestABLE, is meant to help individuals prepare for expenses like education, transportation, housing and medical needs.
“You know, this is new to every state in our country and so we’ve been able to learn from best practices of others and really influence how this program is rolled out across the entire country,” Mitchell said.
In order to be eligible for the account, disability onset must have occurred before the age of 26 and are eligible for Medicare. It also allows people with disabilities to have larger savings accounts without endangering access to public benefits, such as Medicaid. State lawmakers voted to enable the federal program last session.