When a worker with a disability looks for a better job with a higher wage they often have to decide whether to take a cut in their federal benefits such as Social Security or Medicaid, which are essential.
New York State Comptroller Thomas DiNapoli came to Buffalo Friday to spread the word about a state program that can relieve the stress of a higher income on individuals with disabilities and their families.
It is called NY ABLE which allows people with disabilities to save as much as $15,000 a year, without jeopardizing their benefits–an additional $12,000 if they work.
DiNapoli made a presentation to the Developmental Disability Alliance of Western New York, a network of caregivers for persons with developmental disabilities, and compared it to another popular savings plan for families.
“It is similar to the college savings program, but that is specific to save money for college. This is a savings vehicle to help someone with a disability save for living expenses,” and it is administered by the State Comptroller.
Just as the college savings plans are designated 529 savings accounts, the savings plan through the NY ABLE program provides 529A accounts, although DiNapoli points out they do not have the same tax deductibility, “So you are able to really enrich your life, have more financial security without jeopardizing your federal benefits, and that is very, very important to people.”
New York now joins 35 other states that have adopted savings plan for people with disabilities, and if you would like more information on 529A plans, here is a link to the website, or you can call 1-855-5NY-ABLE (1-855-569-2253).