Texas Comptroller of Public Accounts
FOR IMMEDIATE RELEASE
May 4, 2023
(AUSTIN) — Texas Comptroller Glenn Hegar is celebrating a milestone for the Texas Achieving a Better Life Experience (Texas ABLE®) Program — the state’s tax-advantaged savings program for Texans with disabilities. The Comptroller-administrated program marked its fifth year of operation this month.
“I'm proud that over the past five years, thousands of Texans have opened a Texas ABLE account — expanding their opportunity to live a more independent life and save toward a better financial future,” Hegar said. “Being able to save money for qualified disability expenses, while maintaining eligibility for critical means-tested state and federal benefits such as Supplemental Security Income (SSI) and Medicaid, is a game changer and helps Texans with disabilities create a path toward a better quality of life and greater financial security.”
Through March 2023, almost 3,000 Texans with disabilities had saved and invested a total of $21 million in the Texas ABLE Program. Individuals receiving SSI can save up to $100,000 in an ABLE account without affecting benefit eligibility, or if SSI eligibility is not a consideration, individuals can save up to $500,000 in an ABLE account.
Texas ABLE is open to eligible Texans who experience the onset of a disability before the age of 26 and are entitled to SSI or Social Security Disability Insurance benefits, have a condition on the Social Security Administration’s list of Compassionate Allowances Conditions or have a physician’s diagnosis of a qualifying condition.
Families can contribute funds to the account to help pay for disability expenses today or in the future or to provide for loved ones when they no longer can do so. ABLE account withdrawals, including any earnings, are not subject to federal income tax if used for qualified expenses related to the eligible individual’s disability and for maintaining or improving his or her health, independence or quality of life.
The program is open for enrollment year round and offers a secure online platform to enroll and to manage the account. The program also offers monthly webinars to provide an overview on eligibility, contributions, qualified disability expenses and using the account.
The Texas ABLE® Program (“Program”) is administered by the Texas Prepaid Higher Education Tuition Board (“Board”). Orion Advisor Solutions, Inc. is the manager of the Program. The Program and the Board do not provide legal, financial, benefit, or tax advice and you should consult a legal, financial, benefit, or tax advisor before participating.
An account could lose money including the principal invested. Other than the Bank Savings Account option, accounts are not insured or guaranteed by the FDIC. No part of an account is a deposit or obligation of, or is guaranteed or insured by, the Board, the state of Texas, or any agency or agent thereof. Interests in the Program have not been registered with or approved by the SEC or any state. Investors should carefully consider the tax consequences, impact on benefit eligibility, Medicaid recapture, investment objectives, risks, fees, charges, and expenses associated with the Program. The Board may suspend, modify, or terminate the Program or change investment approaches, offerings, and/or underlying investment funds at any time and without the consent of account owners, authorized legal representatives, or beneficiaries. The Program Disclosure Statement and Participation Agreement contain this and other important information about the Program and may be obtained by visiting TexasABLE.org or calling 844-4TX-ABLE (844-489-2253). Investors should read the Program Disclosure Statement and Participation Agreement, and all other Program documents carefully before investing.
© 2023 Texas Prepaid Higher Education Tuition Board. “Texas ABLE” is a registered service mark of the Texas Prepaid Higher Education Tuition Board and distributed by Northern Lights Distributors, LLC, Member FINRA, SIPC, 4221 N 203rd St, Suite 100, Elkhorn NE 68022. All rights reserved.