On Thursday, April 20 PARC Lane in Paulding hosted a feature with the Ohio Treasurer’s office showing how much people can now save who previously were not allowed to when collecting disability. The event brought in families from around the county with disabilities and the advantages that are able to be received with updated laws.
STABLE was brought in to show what can happen with investments now versus several years ago. The nationwide enrollment is now available in Ohio for all qualified people with disabilities that occurred prior to age 26. These are tax free savings plans for disability related expenses and they can save and invest without losing their needs based benefits that otherwise would have been lost.
The three criteria that must be followed: They must be eligible to receive SSI or SSDI due to disability; have a condition listed on SSA’s “list of Compassionate Allowances Conditions”; or self certification. Each person can have 1 account.
Self Certification includes physical or mental impairment that causes, “marked and severe functional limitations” (listed SSA’s Blue book). They would also have to certify that the condition has lasted or is expected to last for at least 1 year and provide your Physician’s information along with the date of diagnosis.
This year Online Enrollment makes it much easier and takes only about 20 minutes and a $50 opening deposit. This can also be authorized by a Legal Representative (ALR). An ALR can be a parent, guardian or a power of attorney.
The annual and lifetime savings limit has been significantly increased and this is good news for everyone! People can even gift into the account. The annual limit for deposit and/or gifting is $14,000. The lifetime limit is $426,000.
There are different investments available from savings with FDIC protection to very aggressive where the investment could be lost if there is a downturn in the market, but otherwise a high interest rate. The funds invested in Stable are able to be transferred to a personal checking or savings account or to the STABLE card (debit) that has a lot of control put on it. For example. It Does not pull directly from the account. It has protection limiting of merchants and not cash access and no overdraft. There is also no cash access so it can only be used for items needed.
When purchases are made on the card there is a now online spending records and each transaction can be noted for tax purposes at the end of the year.
There are several SSI considerations and one is that balances over $100,000 count as a resource and will suspend SSI but it won’t be terminated. The Medicate benefits will not be affected regardless of the amounts.
The presenter stated that if the account holder passes away, the account could be transferred to another sibling with a disability or it would go to the account holder’s estate and be distributed as other assets would be.
There are maintenance fees associated with the account of $30 annually and that is about these are tax free benefits without losing Social Security Disability payments. PARC Lane did a great job hosting to the community this event showing the new benefits!
For more information on these changes or to enroll, please visit https://www.stableaccount.com
