A PA ABLE account gives individuals with qualified disabilities (Eligible Individuals), and their families and friends, a tax-free way to save for disability-related expenses, while maintaining government benefits. Federal and state law authorized the creation of PA ABLE accounts.
Contribute up to $14,000 each year. This federal limit may be adjusted each year based on inflation. Families and friends can contribute to an account. The account limit applies to total contributions and is not per contributor. Account maximum of $511,758. Once limit is reached, no additional contributions can be made. Interest can still be earned.
You may choose to direct your contributions to one or any combination of seven investment options offered by the PA ABLE Savings Program. Six are Asset-Allocation Options with varying blends of stocks, bonds, and cash – with the combinations ranging from conservative to aggressive. The seventh is an FDIC-insured interest-bearing checking account with a debit card provided through Fifth Third Bank.
In addition to the investment fees shown on the investment option charts, there is an account maintenance fee of $15 per quarter, which may be reduced to $11.25 per quarter if you choose to have program statements and information sent electronically. For the Fifth Third Bank checking account option there is an additional fee of $2.00 per month, which is waived if you elect to receive bank statements electronically or maintain an average monthly balance of $250. Additional bank fees may apply. See the PA ABLE Savings Program Disclosure Statement for details.
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