Treasurer Schmitt announces MO ABLE partnership agreement
Wednesday, March 15, 2017
Multi-state effort will result in lower costs and higher quality for participants
JEFFERSON CITY - Missouri State Treasurer Eric Schmitt today announced that Missouri has entered into an agreement with four other states (Ohio, Vermont, Georgia, and Kentucky) to implement MO ABLE, a program that creates tax-advantaged savings accounts for expenses related to disabilities and special needs.
“As the parents of a twelve year-old who faces the challenges of several profound disabilities, my wife Jaime and I know just how important it is that we offer the best ABLE program possible for Missouri families,” said Schmitt. “By entering this partnership, we are ensuring the MO ABLE program will feature the lowest cost and highest quality of any in the nation.”
MO ABLE accounts, which will launch in the coming months, will function similarly to Missouri’s MOST 529 College Savings Plan. Missourians who contribute to MO ABLE accounts will be eligible for a tax deduction of up to $8,000 or $16,000 if married and filing jointly.
“The MO ABLE program will be a game changer for countless Missouri families who face unique financial challenges due to disabilities,” said Cathy Brown, Director of Public Policy and Advocacy for Paraquad. “We greatly appreciate Treasurer Schmitt’s leadership in making sure our state implements the best possible program for the 800,000 Missourians living with a disability.”
State-based ABLE programs are made possible by the federal Achieving a Better Life Experience Act of 2014. Earnings in ABLE Accounts are not subject to federal income tax, so long as funds are spent on qualified disability expenses.