Coloradans Achieving a Better Life Experience program helps families prepare for the future with tax-advantaged savings plans that preserve eligibility for public disability benefits.
Colorado ABLE, a new program that offers tax-advantaged savings plans for people living with disabilities, was officially launched today. ABLE savings accounts are designed to help persons with disabilities save for their futures and promote independence, while protecting their eligibility for public assistance programs.
Eligible individuals and their families may now save up to $100,000 through Colorado ABLE savings accounts, without affecting their eligibility for SSI, Medicaid and other public assistance.
Previously, accumulated assets of just $2,000 would trigger ineligibility for public assistance for people with disabilities, presenting an untenable choice for many families. As mandated by the national ABLE Act, the onset of disability must have occurred prior to 26 years of age.
Additionally, earnings gained in Colorado ABLE accounts are not considered taxable income on federal tax returns, as long as the funds are spent on qualified expenses as a result of a disability, such as education, housing, transportation, employment training and support, personal support services, health care, and other expenses which improve health, independence and quality of life. “The State of Colorado is proud to make this valuable resource available,” commented Dr. Kim Hunter Reed, executive director of the Colorado Department of Higher Education. “Fostering independence and self-sustainability is not only the right thing to do, it’s good for everyone in Colorado.”
For detailed information about the program, please visit www.coloradoable.org.