General InformationDownload PDF Report
The Pennsylvania ABLE Savings Program is offered through the National ABLE Alliance. The program is a tax-advantaged savings program offered by the Commonwealth of Pennsylvania to assist individuals with disabilities and their families in saving for disability-related expenses without jeopardizing their government benefits.
- Program typeABLE Savings plan
- Investment ManagerUnderlying mutual funds at ETFs provided by BlackRock, Schwab, and Vanguard. The high yield savings account is provided by Sallie Mae. The checking account option is provided by Fifth Third Bank.
- State agencyPA Treasury
- Program ManagerAscensus
- Manager contract termUNLOCK PRO
Ratings & Rankings
Our overall rating for non-residents
This is a recent program and does not yet have a 5-Cap Rating assigned.
State residency requirements:No
Who can be a participant/owner in the program?An account owner must be an eligible individual under Section 529A as well as a U.S. Citizen or resident alien with a SSI/TIN number and valid permanent U.S. street address.
Program restrictions:To be eligible for an ABLE savings plan, an individual must have been diagnosed with a disability before age 26, and be eligible to receive benefits under Supplemental Security Income (SSI) and/or Social Security Disability Insurance (SSDI). Individuals who are not receiving SSI and/or SSDI may still be eligible if they meet the age requirement and have been diagnosed by a licensed physician and received a letter of certification.
Did you know?
The plan can be used to pay for qualified disability expenses.
This can include education, job training and support, healthcare and financial management.
Savings in an ABLE account will not impact eligibility to receive government benefits.
The first $100,000 is exempt from the Supplemental Security Income limit, and beneficiaries will continue to receive Medicaid regardless of account size.
Residents are not limited to investing in their own state's ABLE plan.
Another state may offer a plan with better suited investment options, lower fees or preferred features.
Visit this plan's website to learn more
Maximum contributions:The plan's annual contribution limit is currently $15,000 per year per beneficiary from all sources. If employed, up to $27,060 per year.There is also a lifetime account limit of $511,758, at which point no new contributions may be made but the account may continue to grow and accrue earnings.
Minimum contributions:The initial and additional contribution minimum is $25.
Target-Risk Options:Select among 6 portfolio options: Aggressive Option, Moderately Aggressive Option, Growth Option, Moderate Option, Moderately Conservative Option, or Conservative Option.
Bank Money Market Investment / Checking Option:The Checking Account Option invests 100% of its assets in FDIC-insured checking accounts held at Fifth Third Bank.
Fees & Expenses
Enrollment or application fee:None
Account maintenance fee:$60, assessed at $15 per calendar quarter. The quarterly fee is discounted by $3.75 for account owners who elect to receive statements via electronic delivery.
$2 monthly service charge for investments in the Checking Option, waived for accounts with an average daily balance of more than $250.
Program management fees:0.32% for all investment options
Expenses of the underlying investments:Ranges from 0.02% to 0.06%, depending on the selected investment option
Total asset-based expense ratio:0.34% - 0.38%, depending on the selected investment option
Fees or restrictions on the number of disbursementsNone, but there is a $25 fee on all outgoing wires and overnight delivery
Taxes and other Benefits
- Tax deduction for single filers$15,000/yr
- Tax deduction for joint filers$30,000/yr
Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.
Program match on contributions:None
State tax deduction or credit for contributions:None
State tax recapture provisions:None
State tax treatment of qualified distributions:When withdrawn, earnings are exempt from Pennsylvania income tax if they are used for qualified disability expenses.
State tax treatment of rollovers:When withdrawn, earnings are exempt from Pennsylvania income tax if they are used for rollovers into another state's ABLE plan or transfers to another PA ABLE account.
Medicaid eligibilityThe CMS guidance can be found at Implications of the ABLE Act for State Medicaid Programs on the CMS website. Please consult with your state's Medicaid office with any additional questions.
Medicaid recapture provisionsPennsylvania's Enabling Law prohibits the Pennsylvania Department of Human Services, the state agency responsible for administering Medical Assistance (Medicaid), from filing a claim against a PA ABLE account or its proceeds. However, federal Medicaid regulations override the state law's prohibition on filing a claim against the proceeds once they are transferred to the account owner's estate. Repayment may be postponed if the account owner is survived by a spouse or a child under the age of 21 or who has a disability.
Is there a debit card/ purchasing card available, and if so, at what cost?Yes, a Debit Mastercard with no annual fee is available
Statutory protection of an account from creditors:UNLOCK PRO
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