Michigan Marks ABLE Savings Day by raising awareness of disability savings accounts

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With Wednesday marking the first national ABLE Savings Day, the Michigan Department of Treasury is spotlighting opportunities to financially empower people with disabilities.

Through the month of August, those opening an eligible MiABLE savings account will receive up to a $100 match, the department said in a statement.

“We are proud to have been among the earliest states in the nation to establish access to ABLE accounts as life-changing financial empowerment tools for people with disabilities and their families,” MiABLE Program Director Scott de Varona said.

“Offering match incentives to encourage more people to participate in such a beneficial program allows us to underscore just how life-changing opening a MiABLE account can be for all those eligible Michiganders who have yet to enroll,” de Varona said.

The disability savings program was created after the Stephen Beck, Jr., Achieving a Better Life Experience Act (ABLE Act) was passed into federal law on Dec. 19, 2014 and is intended to help ease the financial burden faced by those with disabilities. According to the Department of Treasury, the accounts can help people with disabilities save for current and future expenses without jeopardizing government assistance like Medicaid and Supplemental Security Income.

People with disabilities who receive government benefits are subject to a $2,000 asset limit. When compared to those without disabilities, disabled individuals are twice as likely to have incomes below the federal poverty threshold, less likely to be employed and more likely to be underemployed.

The MiABLE program allows individuals who became disabled before age 26 and their families to save up to $18,000 annually in various investment options. Outside of that limit, account beneficiaries who are employed can contribute an amount equal to their current-year gross income, up to $14,580.

Approximately 500,000 individuals in Michigan are eligible to open MiABLE accounts, but only about 1% of that number are currently enrolled statewide, de Varona said.

Additional information on eligibility, benefits and how to apply for an account are available through the National ABLE alliance’s website at savewithable.com/mi/home.html .

The ABLE Savings Plans Network is also hosting a webinar for individuals who have opened, or plan to open an ABLE account on Wednesday, Aug. 21 at 2 p.m., with registration available at abletoday.org/webinar-home .

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