Hundreds of Missourians with disabilities and their families have accumulated a combined total of over $2.2 million in savings for their long-term needs through the MO ABLE program since it was launched by state Treasurer Eric Schmitt one year ago.
MO ABLE empowers people with disabilities to save and invest through tax-free savings accounts without losing eligibility for federal programs like Medicaid and Supplemental Security Income (SSI). The program is made possible by the Missouri Achieving a Better Life Experience (ABLE) Act of 2015 – legislation championed by Schmitt (whose son Stephen lives with several disabilities) during his time in the Missouri Senate.Â
Missourians who contribute to MO ABLE accounts are eligible for a tax deduction of up to $8,000 or $16,000 if married and filing jointly. Earnings in MO ABLE accounts are not subject to income tax, so long as funds are spent on qualified disability expenses.
Before the launch of MO ABLE, individuals with disabilities were only allowed a maximum of $2,000 in savings before losing access to certain benefits and services.
Last year, Schmitt launched the MO ABLE Disability Savings Coalition, consisting of government entities, resource centers and advocacy organizations, to raise awareness of the program. He also joined forces with Illinois Treasurer Michael Frerichs to call on federal lawmakers to increase the amount of money earned at a job that an individual with a disability can save and invest in an ABLE account. Those changes, known as ABLE to Work, were passed by Congress in December as part of the federal tax reform package.
An initial contribution of at least $50 is required in order to set up a MO ABLE account. Eligible individuals can learn more and sign up for an account at www.moable.com.