HARRISBURG- Pennsylvania Treasurer Stacy Garrity announced a fee reduction for PA ABLE (Achieving a Better Life Experience) account owners – the fourth cut in the past three years.
PA ABLE provides a tax-free way for people with qualifying disabilities to save and pay for disability-related expenses without the risk of losing important benefits like Supplemental Security Income and Medical Assistance.
“We just finished a statewide tour celebrating the fact that PA ABLE reached $100 million in assets – and it keeps going up and up,” Treasurer Garrity said. “Today, we have more than 8,700 accounts with over $118 million saved. That’s amazing, and this new fee cut is a direct result of those account owners being committed to saving for the future. Making PA ABLE more affordable helps account owners save even more to cover the costs of their disability-related expenses.”
PA ABLE annual asset-based fees are being reduced by 2 basis points (0.02%) because the National ABLE Alliance surpassed the $450 million asset milestone. PA ABLE accounts make up more than 25% of the assets in the 19-member National ABLE Alliance. PA ABLE account assets alone have nearly tripled in just three years.
The previous fee cuts announced in February 2021, January 2022, and April 2023 have saved PA ABLE account owners more than $85,000 to date. Combined with the reduction announced today, PA ABLE account owners will save more than $80,000 every year going forward.
“For many people with disabilities, gaining financial independence was impossible before PA ABLE – so every single dollar matters,” Treasurer Garrity said. “I will never stop fighting to make PA ABLE as affordable as possible.”
PA ABLE offers seven investment options. Account owners can contribute up to $18,000 annually, with no federal or Pennsylvania state income tax paid on account growth when it is used for qualified expenses. PA ABLE can be used to pay for day-to-day expenses like groceries and rent as well as long-term expenses like assistive technology and adaptive vehicles and much more.
Treasurer Garrity is the inaugural chair of the National ABLE Savings Plans Network (ASPN), a part of the National Association of State Treasurers (NAST). The network’s goal is to increase awareness and use of ABLE accounts through advocacy and collaboration.
To learn more about PA ABLE, visit paable.gov or call 855-528-ABLE (2253).
