Oregon Launches ABLE Program
The ABLE National Resource Center, managed by National Disability Institute (NDI), is excited to congratulate the State of Oregon on the launch of its “Oregon ABLE Savings Plan” (which caters specifically to Oregon residents) and its “ABLE for ALL Savings Plan” (which is open to all qualified ABLE beneficiaries nationwide).
Both of Oregon’s ABLE plans allow qualified individuals with disabilities to save up to $14,000 a year in an ABLE account without jeopardizing their eligibility for federally-funded means tested benefits, such as Supplemental Security Income (SSI) and Medicaid. The funds in the account can be used for disability-related expenses that assist the beneficiary in increasing and/or maintaining his or her health, independence or quality of life.
Millions of individuals with disabilities and their families are often relegated to a life of poverty as a result of not being allowed to build even the most modest levels of resources. Individuals receiving supports through Social Security, Medicaid and other publicly-funded programs are often disqualified from those supports if they have more than $2,000 worth of resources or assets. Now, with the launch of nationwide ABLE programs, individuals with disabilities and their families will be able to take a step to better secure their financial futures and to help offset the often significant financial challenges that can accompany living with a disability.
Not unlike the other ABLE programs across the country, the Oregon ABLE plans focus efforts to ensure minimal costs associated with establishing and maintaining an ABLE account (which can be done all online). The Oregon ABLE Savings Plan has an annual account fee of $45 ($3.75 per month), however this will be reduced to $22.50 for all Oregon residents who open their account before December 31st, 2017. The ABLE for ALL Savings Plan (open to residents of all states) has an annual account fee of $55 ($4.59 per month). Under both plans the total annual asset-based fees vary depending on the investment selections held within an account, but do not exceed .38%.
It is important to note that if the contributor is a resident of Oregon, contributions made into the Oregon ABLE Savings Plan are eligible to receive a state income tax deduction of up to $4,620 for joint filers and $2,310 for individuals. This state income tax deduction can only be taken advantage of if the ABLE beneficiary is under the age of 21.
The Oregon ABLE Savings Plan, ABLE for ALL, MiABLE, ENABLE, ABLE TN, Ohio STABLE Account, and ABLE United programs are currently the only programs enrolling beneficiaries in the country, and they are doing so primarily via their online portals. We are also expecting at least a couple more states, including the State of Virginia, to be launching their ABLE account programs by the end of the year.
For more information on both of Oregon’s ABLE plans and how to enroll, please visit http://oregonablesavings.com/
For more information related to ABLE programs and accounts in general, and for the latest news regarding other state programs, please visit the ABLE National Resource Center at www.ablenrc.org.