ESTATE PLANNING: PA. ABLE SAVINGS PROGRAM BENEFITS

• Tuesday, April 4, 2017
• Category: Estate Planning and Estate Administration

ABLE SAVINGS PROGRAM BENEFITS

Keep Your Needs-Based Benefits

PA ABLE Savings Program accounts are an addition to, not a replacement of, government programs and do not affect eligibility for any federal needs-based programs including Medicaid. There is a limitation for Supplemental Security Income (SSI) benefits. For example, accounts up to $100,000 are not considered in determining eligibility for SSI.

Tax Advantages

• Owe no federal or Pennsylvania income tax on saving’s growth when held in the account (tax deferral).
• Take withdrawals for “qualified disability expenses” and no federal or Pennsylvania income tax is owed (tax exemption).
• Entire account (savings and growth) is exempt from Pennsylvania inheritance tax.

Pennsylvania Residents: Open a PA ABLE Account – Get Exclusive Benefits

• Protects eligibility for PA health and disability-related benefits
• Protects eligibility for PA student financial aid
• Contributions grow PA income tax free
• Entire account is exempt from PA inheritance tax
• Entire accounted is protected from creditors of the account owner, beneficiary or contributor
• Account not subject to Medical Assistance (Medicaid) repayment (account owner’s estate might be)

Reference: www.paable.gov/benefits ; www.patreasury.gov

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