INDIANAPOLIS — Hoosiers with disabilities have a streamlined pathway to financial independence through the state’s savings program, INvestABLE Indiana, which allows participants to build wealth without risking their vital government benefits.
The program, administered by the Indiana ABLE Authority, provides tax-advantaged savings accounts tailored specifically for individuals living with disabilities. Under current federal rules, traditional savings accounts can disqualify individuals from receiving resource-tested benefits if their assets exceed modest thresholds. INvestABLE Indiana bridges this gap by shielding those savings.
“There’s no limit to what people with disabilities can do,” the program stated, emphasizing that financial planning and security should now be included in that scope.
A cornerstone feature of the initiative is its protection of Supplemental Security Income (SSI) and Medicaid. Account balances of $100,000 or less are entirely excluded from the SSI resource limit. If an account holder’s balance exceeds $100,000, SSI benefits are merely suspended — rather than terminated — until the balance falls back below the limit. Furthermore, Medicaid eligibility remains intact regardless of how much money is accumulated in the account.
To qualify for the program, an individual must have developed their disability before the age of 26. Eligible participants must also meet at least one of the following criteria: eligibility for SSI or Social Security Disability Insurance (SSDI); blindness as determined by the Social Security Act; or a similarly severe, medically determinable physical or mental impairment verified by a licensed physician.
Earnings within the accounts grow federally tax-deferred and can be withdrawn completely tax-free, provided the funds are used for “Qualified Disability Expenses.” The program defines these broadly as any costs incurred to improve the beneficiary’s quality of life. Examples include education, housing, transportation, healthcare, employment training, assistive technology, and financial management.
The program allows participants or authorized representatives to open an account online in roughly 15 minutes with a minimum initial contribution of $25. Funds can be built up through multiple avenues, including payroll direct deposits, electronic transfers, checks, and Ugift — a crowdfunding feature that allows family and friends to contribute directly to the account.
While the accounts offer diverse investment options ranging from mutual funds to a Fifth Third Bank checking option with debit card access, officials remind investors that municipal security investments carry market risks.
For more information or to review the program disclosure booklets, Indiana residents can visit in.savewithable.com or call the state’s assistance line at (888) 609-3457.
