HAWAI‘I ABLE SAVINGS PROGRAM (IRC 529A)
For too long, people with disabilities could not save for the future out of fear of losing needed government benefits. Thus, in December of 2014, the Achieving a Better Life Experience Act (ABLE) was passed by Congress to allow states to create tax advantaged savings programs for eligible people with disabilities. These 529A ABLE accounts allow people with disabilities to save money without losing their state and federal benefits since the money saved in these accounts do not count against asset limits in most state and federal programs. The Hawai‘i ABLE Savings Program is a voluntary program designed to allow individuals with disabilities to save for qualified disability expenses and invest for future needs, and is administered by the State of Hawai‘i’s Department of Budget and Finance.
Once you choose to participate, your contributions are made with after-tax dollars. Both the earnings from your ABLE account and distributions for qualified disability expenses are tax-free.
To enroll and/or obtain more information on the program, please visit https://hawaiiablesavings.com/ or contact Daintry Bartoldus, Executive Administrator, Hawai‘i State Council on Developmental Disabilities, at (808) 586-8100.