State Treasurer Hopes To Expand Number Of Tax-Free Accounts For Iowans With Disabilities

Des Moines, Iowa — State Treasurer Roby Smith sees room for expansion of the I-ABLE program his office manages for Iowans with disabilities.

The money deposited in a tax-free I-ABLE account may be used to cover expenses related to a disability and the spending does not affect the person’s eligibility for government assistance programs like Medicaid or Social Security.

US Census data indicates nearly 400,000 Iowans have some sort of a disability. I-ABLE accounts can accrue interest and help Iowans living with a disability cover expenses like housing, transportation and job training as well as in-home support services.

Smith recently made a presentation about I-ABLE in Pella and the treasurer’s office hosted a webinar with the Iowa Developmental Disabilities Council this spring.

An Iowan with a disability may open their own account — or accounts may be opened by relatives, legal guardians or conservators who act on behalf of an Iowan with a disability. The yearly contribution limit is $17,000. Forty-nine states now offer the program after congress established the tax-free benefit for an Achieving a Better Life Experience or ABLE accounts in 2014. Iowa lawmakers created the I-ABLE program here the following year.



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