ABLE Savings Plans are designed to help individuals with disabilities save for short and long-term disability expenses, and there are additional plan benefits to help account owners save even more. MEFA’s Associate Director of College Planning Jonathan Hughes explains what you need to know about the ABLE to Work Act and the Saver’s Credit and how these can help boost your savings. For more information on Attainable®, the Massachusetts ABLE savings plan, visit our Attainable® page.
Please note that this transcript was auto-generated. We apologize for any minor errors in spelling or grammar.
[00:00:00] Hi everyone. Jonathan here from MEFA and I wanna take a minute to tell you about Attainable the Able Savings Plan, a tax exempt savings plan designed specifically for individuals with disabilities. I also want to tell you about the able to work benefit that exists for ABLE account owners who work
able to work offers the ability for attainable account holders with employment income to make additional contributions above the $17,000 annual limit. Now there are some prerequisites to be eligible. You or your employer can already be contributing to certain types of plans like retirement plans or 4 57 B plans in the same calendar year as an able plan Able.
Plans like attainable are managed by states or entities like MEFA and some, but not all may require an account owner to complete a form to certify that they’re eligible for the increased contribution as long as account owners stay eligible. Contributions may be made each year through the end of 2025 when the provision is [00:01:00] set to expire.
Able Account owner who works is subject to the same tax filing rules as other workers. So there are no new record keeping requirements under the Able to Work Act. An additional able tax benefit is the saver’s credit, meaning an able account owner who works may be eligible for a tax credit of up to $2,000 for contributions to their ABLE account.
So if you think that you or someone in your life could benefit. From saving with the attainable savings plan and taking advantage of the able to work or visit mefa.org/attainable for more information and to learn more about opening an account.