COLUMBUS, Ohio (AP): Ohio is introducing tax-advantaged savings and investment accounts for eligible children and adults with disabilities.
STABLE Accounts allow individuals to accumulate money for college, retirement or other purposes without losing eligibility for certain benefits programs, such as Medicaid, SSI and or SSDI. They were created under the Achieving a Better Life Experience (“ABLE”) Act of 2014.
The Ohio treasurer’s office is administering the program. With its launch Wednesday, Ohio became the first state to participate.
STABLE Accounts have a normal bank account’s saving and withdrawal features, while also allowing for long-term investments like a 529 college savings account or 401(k). They aren’t subject to federal income tax as long as the money is spent on qualified disability expenses.
The initial minimum contribution is $50. Set-up is free.