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MO ABLE program expanded to allow greater savings

MO ABLE program expanded to allow greater savings

October 6th, 2018 by Joe Gamm in Local News

A state initiative launched Friday increases the amount disabled people may contribute to certain savings accounts without affecting state or federal assistance they may be receiving.

Missouri State Treasurer Eric Schmitt announced the launch of the MO ABLE to Work initiative while at a roundtable celebrating Disability Employment Month.

The tax incentive savings accounts (MO ABLE) are based on the federal Achieving a Better Life Expectancy Act (ABLE) of 2014. The act allows people with disabilities to save more than $2,000 without affecting their state or federal assistance.

Launched in 2017, the accounts allow people diagnosed with a disability prior to age 26 to enroll and contribute up to $8,016 per year. Married couples may contribute up to $14,000 annually.

The work initiative upped the contribution limit for an individual by $12,060 annually to $27,060.

The newly announced initiative also allows MO ABLE account holders to claim a “Saver’s Credit,” which is a nonrefundable federal tax credit for eligible taxpayers — for qualified retirement savings contributions.

The credit is granted for contributions made to the account from earned wages.