27 December 2022- Treasurer Stacy Garrity and disability advocates across Pennsylvania today hailed Congress’s passage of the ABLE Age Adjustment Act, which will expand ABLE program eligibility to include an estimated 6 million more Americans, including one million veterans, by raising the age limit for onset of a disability from 26 to 46 starting in 2025. ABLE accounts are a tax-free way to save for disability-related expenses while maintaining means-tested government benefits.
“It’s a great day for people with disabilities not only in Pennsylvania, but those across the country, who will now have the ability to save for the future without jeopardizing benefits they currently rely on. As a veteran, I’m especially grateful to know that my disabled brothers and sisters in arms, many of whom suffered disabilities after their 26th birthday while defending our great nation, will now have access to ABLE accounts and the tax advantages that come with them.”
Pennsylvania State Treasurer, Stacy Garrity
The ABLE Age Adjustment Act was introduced by U.S. Senator Bob Casey. His bill was cosponsored by Senator Pat Toomey, and a corresponding House bill had 17 cosponsors from Pennsylvania’s 18-member delegation, including U.S. Representatives Brendan Boyle, Matt Cartwright, Madeleine Dean, Michael F. Doyle, Dwight Evans, Brian Fitzpatrick, Chrissy Houlahan, John Joyce, Fred Keller, Mike Kelly, Conor Lamb, Dan Meuser, Guy Reschenthaler, Mary Gay Scanlon, Lloyd Smucker, Glenn Thompson and Susan Wild.
“I commend Senator Casey for his dedication to helping people with disabilities live more independently and plan for a secure future for themselves and their families,” Treasurer Garrity said. “And I’m thankful to Senator Pat Toomey and the overwhelming majority of members in Pennsylvania’s House delegation who signed on as cosponsors”, said Garrity
Senator Casey also spearheaded the original ABLE Act of 2014, allowing states to establish ABLE programs to make it possible for people with disabilities to save for the future without losing necessary benefits. Pennsylvania’s ABLE program, PA ABLE, launched in 2017 after being introduced by state Senator Lisa Baker.
The changes to ABLE eligibility age limitations were included in the bill known as SECURE 2.0, which passed the House and the Senate last week and is expected to be signed into law by President Biden.
PA ABLE is one of the fastest growing ABLE programs in the country, and the largest in the 18-member National ABLE Alliance – accounting for nearly 25% of total assets.
PA ABLE allows for up to $16,000 in savings per year (this limit will increase to $17,000 starting on January 1, 2023) and up to $100,000 total without impacting government benefits. Funds are easy to access and may be used for a wide-wide range of disability-related expenses.
Treasurer Garrity serves as the inaugural chair of the new ABLE Savings Plan Network, a part of the National Association of State Treasurers (NAST). Increasing the age limit for ABLE account eligibility has been a top priority of NAST since ABLE accounts first launched more than five years ago.