Texas ABLE® Program – A Savings Program for Texans with Disabilities
The Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (the “Act”) was passed by Congress and signed into law to provide certain individuals with disabilities a means to save for disability-related expenses. It allows a state to create a qualified ABLE program where an ABLE account may be established for an individual with a disability who is the Designated Beneficiary and owner of that account.
The Texas Legislature enacted the Texas Achieving a Better Life Experience Act that established the Texas ABLE® Program. The Texas Prepaid Higher Education Tuition Board, with assistance from the Texas Comptroller of Public Accounts, administers the program. The purpose of this program is twofold: (1) to encourage and assist individuals and families to save funds in support of individuals with disabilities to maintain their health, independence, and quality of life; and (2) to provide secure funding for qualified disability-related expenses in a tax-advantaged account without losing eligibility for certain public benefits such as Medicaid, Supplemental Security Income (SSI), and Social Security Disability Insurance (SSDI), or benefits received from private insurance, the beneficiary’s employment, and other sources. Texas Residents who experience the onset of a disability before the age of 26 and meet program eligibility requirements may open a Texas ABLE account.
Texas ABLE Program Highlights
- Save up to $15,000 per year (or even more if exceptions in the Tax Cuts and Jobs Act of 2017 apply). ABLE account funds up to $100,000 are generally disregarded for purposes of determining eligibility to receive government assistance or benefits.
- Withdrawals are tax-free if used to pay for qualified disability expenses, and any earnings on your investments grow tax-free.
- Maintain control of your account, and choose how you want your funds invested.
- Access and monitor your account through our secure online platform.
- Use our online gifting tool and make it easy for others to make contributions to your account, including your friends and family, business entities or even trusts.
For additional information on the Texas ABLE program, you can:
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