Hunt & Associates P.C.

Oregon Launches its ABLE Savings Plan

Piggy bankBeginning December 6, 2016, Oregonians can take advantage of the federal “ABLE Act” which allows persons with disabilities to establish accounts which can be used to pay their disability related expenses.[1]  Those eligible can now open an ABLE account by enrolling via the Oregon ABLE website.  The enrollment process is estimated to require no more than 15 minutes to complete.

Up to $14,000.00 can be contributed to an ABLE account each year without jeopardizing the recipient’s eligibility for other benefits such as SSI (Supplemental Security Income) or SSDI (Social Security Disability Income).  Contributions as low as $10.00 can be made at any time.  Account earnings and money withdrawn for disability related expenses are tax free.  If the account’s beneficiary is under 21 years of age, contributions to the account qualify for a state income tax deduction.

Participants in this program will be charged an annual fee of $45.00.  In addition, there will be an annual administrative fee between 0.30% and 0.38% of the account’s annual balance, depending on which of the three available investment options is chosen.

© 12/9/2016 Charles A. Ford of Hunt & Associates, P.C.  All rights reserved.

[1]   For additional in depth information, please see our previous blog posts: ABLE Accounts: A New Savings Account for People with Disabilities dated Jan 15, 2015; “Almost ABLE: An Update on Savings Accounts for People with Disabilities dated July 16, 2015; and ABLE Accounts Can Be a Game Changer for People with Disabilities,” August 4, 2016.

 

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