Helping people help themselves -- Iowa ABLE Accounts
Posted on 03/02/2017 at 12:00 AM by David Repp
In 2014, Congress enacted ABLE which stands for Achieving a Better Life Experience. The Act allows States to adopt enabling legislation to allow people with disabilities to control an account funded by friends and family without disqualifying the individual from Medicaid and other government welfare benefits. Iowa adopted such enabling legislation and accounts can be created for an individual with disabilities at the State Treasurer’s office: https://www.iable.gov/
Contributions are limited to a total of $14,000 per year per account. So this means that an ABLE account set up for Casey Jones can only have contributions of $14,000 per year contributed to it. If there are multiple donors to Casey’s account, the total contributions in a year must not exceed $14,000. Iowa residents who make a contribution to an ABLE account can deduct up to $3,239 of such contribution. Earnings on the account (through the Iowa Treasurer’s office) are not taxed.
The material in this blog is not intended, nor should it be construed or relied upon, as legal advice. Please consult with an attorney if specific legal information is needed.
Categories: Taxation Law, David Repp
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