Kentuckians with disabilities will soon be able to save and invest through new tax-free accounts.
Prior to the passage of the federal Achieving a Better Life Experience, or ABLE, Act two years ago, residents with disabilities could amass only $2,000 in trusts before losing their eligibility for government programs like Medicaid. Tuesday, Kentucky State Treasurer Allison Ball announced her office will begin providing so-called STABLE Accounts.
"It's been a great need. People have been asking for it for awhile," she tells WUKY.
One Kentucky mom who will be taking advantage of the program is Ashley Barlow, whose six-year-old son Jack has Down Syndrome. She says money from his baptism, birthdays, and other future events will be placed in his account, giving some measure of autonomy.
"He's going to be able to use that for his specific disability purpose, whatever it is," she says. "Whatever he wants to use that money for, that money is his."
That includes qualified expenses, like education, healthcare, housing, and transportation.
While the account earnings are not subject to federal income tax, Ball says some limits apply – a maximum of about $14,000 can be placed in the accounts per year with a lifetime cap of around $100,000.
