Savings can be easier than you think. Istock/Dolgachov
The state of Nebraska and First National Bank of Omaha launched a savings plan for individuals with disabilities.
The state of Nebraska and First National Bank of Omaha launched the Enable Savings Plan to provide individuals with disabilities an affordable, simple and straightforward opportunity for financial independence.
Account owners can save for their future in tax-free savings accounts and pay for everyday expenses.
The Enable Savings Plan will be available to individuals with disabilities living in any U.S. state.
With the launch of the Enable Savings Plan, a program of the Nebraska State Treasurer’s Office, Nebraska will be one of the first states to offer an Achieving a Better Life Experience (ABLE) plan. The Enable Savings Plan will provide a range of comprehensive options for families to save. Key attributes of Enable include:
- Risk-based growth, moderate and conservative allocation investment options
- A Federal Deposit Insurance Corporation-insured bank savings option
- A checking account option with debit card capability coming this fall
The Nebraska ABLE Act was approved by the state legislature and signed into law on May 28, 2015, following action by Congress. In December 2014, Congress enacted Section 529A of the Internal Revenue Code, allowing for a tax-favored savings program for eligible individuals with disabilities to be used to pay qualified disability-related expenses.
Both the federal and state legislation were modeled on the state-sponsored 529 College Savings program, which in Nebraska is administered by the state treasurer.
Under the Enable program, earnings in the accounts will not be subject to state or federal taxes as long as they used for qualified disability-related expenses. Federal benefits will not be jeopardized if assets in a beneficiary’s account remain at $100,000 or less.