The federal government passed The ABLE Act four years ago – ABLE stands for “achieving a better life experience.”
The bill allows states to offer a program in which somone with a disability, or the parent of a disabled child, can create a savings account with special tax advantages.
In 2016 Indiana lawmakers voted to enable the program, and the result is called InvestABLE.
It launches July 27.
Indiana Treasurer Kelly Mitchell says without the program, disabled Hoosiers could only save $2,000 a year before losing tax benefits. But through it that number jumps to $14,000 a year, with a total savings cap of $100,000.
Mitchell says it’s important that the money, once qualified, can go towards a range of expenses, like education, housing and transportation.
“They’re able to save for their children,” Mitchell says. "That gives a parent peace of mind, and it allows adults to be able to save for things outside of what they’ve been able to, up until now."
The state estimates 80-to-100,000 people could be eligible for the new program.