PA ABLE Surpasses $75 Million Savings Milestone

Treasurer Stacy Garrity announced that the PA ABLE Savings Program has surpassed $75 million in assets for the first time. PA ABLE (Achieving a Better Life Experience) is a tax-free way for Pennsylvanians with qualifying disabilities and their families to save without affecting eligibility for government disability benefits. Funds are easy to access and may be used for a wide range of disability-related expenses.

“The fantastic growth in our PA ABLE program shows how important these accounts are for Pennsylvanians with disabilities and their families,” Garrity said. “It’s especially exciting to reach this milestone during August, which is ABLE to Save Month – a time to educate people about the power of PA ABLE, and how PA ABLE accounts can help Pennsylvanians with disabilities gain independence and improve financial wellness.”

“For more than 5 years, PA ABLE has helped thousands of Pennsylvanians with disabilities save for their future without fear of losing their disability benefits,” U.S. Senator Bob Casey said. “Those savings have now surpassed $75 million. That is money people with disabilities can use to pay for rent or groceries, to plan for large expenses related to their disability or to save for future goals like buying a home or starting a business. Now, I am working in Congress to pass the ABLE Age Adjustment Act so that even more Pennsylvanians with disabilities can save money to support themselves and achieve their goals.”

“PA ABLE was a very good idea in its conception, and it is proving exceptionally positive and productive in its application,” Senator Lisa Baker said. “The program is a big help for families planning a better future for a loved one with a disability. To their credit, Treasurer Garrity and her staff run these programs in a fiscally sound and cost-effective manner.”

PA ABLE was created by state legislation with leadership from Sen. Baker and former Rep. Bernie O’Neill following the federal passage of the ABLE (Achieving a Better Life Experience) Act of 2014 – spearheaded by Senator Casey – which gave states the authority to create ABLE programs.

Nearly 7,000 Pennsylvanians have saved $75.3 million for disability-related expenses since the program opened in 2017.

PA ABLE allows for up to $16,000 in savings per year and up to $100,000 lifetime savings without impacting government benefits. Tax benefits include no federal or state income taxes owed on earnings or qualified withdrawals; a PA state income tax deduction for contributions up to $16,000 annually; and exemption from PA inheritance tax.

The program offers six investment options and an interest-bearing checking account. Qualifying disability expenses can include education, housing, transportation, assistive technology, health care, financial management, and more.

To be eligible for PA ABLE, a person’s disability must have occurred prior to their 26th birthday. The ABLE Age Adjustment Act, being considered by Congress, would raise the age limit for eligibility to 46. This would expand ABLE account access to about six million more Americans, including an estimated one million disabled veterans. The legislation was introduced by Pennsylvania Senator Bob Casey and is cosponsored by Pennsylvania Senator Pat Toomey. A House version has also been introduced and is cosponsored by a bipartisan group of 15 members from the Pennsylvania delegation, more than any other state.

“The ABLE Age Adjustment Act will do great things to expand access to the program,” Garrity said. “As a veteran, I know PA ABLE can really benefit my brothers and sisters in service who made sacrifices we can never repay. I urge Pennsylvanians to let their representatives in Washington know this is a priority and should be passed as soon as possible.”