New savings plan for disabled Iowans

DES MOINES - Iowans with disabilities or their family members are being offered a new tax-advantaged savings account that will allow them to set aside money to pay for qualified expenses without losing eligibility for federal assistance, under a plan announced Tuesday by State Treasurer Mike Fitzgerald.

The savings plan, called IAble, was made possible by a 2014 federal act that authorized tax-advantaged investment accounts - similar to college savings programs - that allow disabled Iowans or their families to save up to $14,000 annually to cover expenses, such as assistive technology, housing, transportation, education and other costs, Fitzgerald said. In 2015, Iowa's version of the federal bill was signed into law, making the savings program possible, he noted.

Iowa and 14 other states have formed a consortium that allows IAble to offer low costs and high-quality investment options to eligible individuals. Iowa taxpayers may deduct up to $3,239 in contributions from their adjusted gross income for 2017 and the earnings on investments are deferred for federal and state taxes if used for qualified disability expenses, he said.

'Our new IAble program is a tax-advantaged plan designed to help persons with disabilities and their families save to achieve a better life experience,” said Fitzgerald, who unveiled the program at a Statehouse news conference.

Already five Iowans have gone to the IAble.gov website and started savings plans. Accounts can be opened with as little as $25, the state treasurer said, and account owners can access their accounts online at any time, as well as make withdrawals through the website.

To qualify for the plan that allows accounts of up to $100,000, the beneficiary must have been diagnosed with a disability before the age of 26 or be blind and qualify for a federal assistance program. Eligible individuals can open one account for themselves or have an authorized individual start one on their behalf, Fitzgerald said.

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