Columbia, South Carolina - August is #AbleToSave month. A Palmetto ABLE account is an investment account available to eligible individuals with disabilities. Palmetto ABLE accounts are made possible by the federal Achieving a Better Life Experience ("ABLE") Act. Palmetto ABLE accounts allow individuals with disabilities to save and invest money without losing eligibility for certain public benefits programs, like Medicaid or SSI. Earnings in your Palmetto ABLE account are not subject to federal or state income tax, so long as you spend them on "Qualified Disability Expenses."
"One of the biggest obstacles was the $2,000 asset limitation for individuals with disabilities receiving Medicaid or Supplemental Security Income," South Carolina State Treasurer Curtis Loftis said. "Thankfully, passage of the federal ABLE (Achieving a Better Life Experience) Act corrected this situation by removing this barrier and allowing these individuals the freedom to save for their future."
Palmetto ABLE accounts have some similar features to traditional bank accounts, but they are not checking or savings accounts. Palmetto ABLE accounts are investment accounts, similar to 529 college savings accounts or 401(k) retirement accounts. When you deposit money into your Palmetto ABLE account, your money will be invested in different options that you choose. While you can still withdraw and spend your money whenever you need it, a Palmetto ABLE account also allows you to grow your money and to save long-term for disability expenses.
"This August, as we celebrate ABLE to Save Month, we know our work is far from done," Loftis explained. "My office is partnering with other state treasurers and elected officials to encourage passage of the federal ABLE Adjustment Act. This legislation will extend the qualifying age of disability onset from 26 to 46 and allow even more South Carolinians with disabilities to benefit from Palmetto ABLE accounts."
To find out if you or a loved one is eligible to open a Palmetto ABLE account, please visit PalmettoABLE.com