August marks “ABLE to Save Month,” and Delaware State Treasurer Colleen Davis wants to use the opportunity to celebrate Delawareans with disabilities and the freedom, independence, and possibilities their ABLE accounts provide.
ABLE (Achieving a Better Life Experience) plans allow individuals with disabilities and their families to save for a broad range of expenses on a tax-advantaged basis without jeopardizing their benefits from supplemental security income (SSI), Medicaid and other state and federal programs.
“Since taking office, I have focused on three main priorities: bolstering retirement security and readiness, creating pathways to economic empowerment, and promoting a culture of financial excellence,” Treasurer Davis said, “and it’s important to remember those are my priorities for all Delawareans, including those with disabilities. I’m proud that our own ABLE program, DEPENDABLE, provides a way for those with disabilities to save for the future.”
People with disabilities who receive SSI benefits may not have more than $2,000 to remain eligible for SSI and Medicaid. This limitation makes it difficult for many people with disabilities to live the independent lives they deserve and desire.
“A DEPENDABLE account offers solutions that empower our most vulnerable residents to make long-term planning decisions,” Davis said. “The ability to save creates independence by promoting the importance of financial wellness.”
As of June 30, 2022, DEPENDABLE held 242 funded accounts with assets totaling more than $2.1 million.
In addition to the existing benefits of a DEPENDABLE account, Delawareans who save with DEPENDABLE now also receive a deduction on their state income tax.
“A new law passed by the General Assembly establishes a tax deduction of up to $5,000 ($10,000 for couples filing a joint return) for contributions to DEPENDABLE accounts,” Davis said. “I thank the members of the General Assembly and Governor Carney for joining me in helping people with disabilities and those that support them.”
For more information about DEPENDABLE, visit able.delaware.gov, or visit the National Association of State Treasurers to learn more about ABLE Savings Plans.