Ohio Treasurer John Mandel announced June 1 that Ohio is the first state to launch STABLE accounts.
The accounts will help those with disabilities save and invest money without losing eligibility for certain public benefit programs such as Medicaid, SSI or SSDI. Earnings in STABLE Accounts are not subject to federal income tax, so long as funds are spent on qualified disability expenses.
According to a news release from Mandel#x2019;s office, STABLE Accounts have similar features to normal bank accounts, but are also investment accounts, similar to 529 college savings accounts or 401(k) retirement accounts. When a participant deposits money into their STABLE Account, the money can be invested in different options chosen by the participants. While participants can still withdraw and spend money as needed, a STABLE Account also allows money to grow and to save long-term for disability expenses.
STABLE Accounts are made possible by the federal Achieving a Better Life Experience (#x201c;ABLE#x201d;) Act passed by Congress in 2014.