JEFFERSON CITY, Mo. – State Treasurer Eric Schmitt announced Wednesday a new initiative to join with four other states to expand the Missouri Achieving a Better Life (MO ABLE) program, which will allow families and individuals with disabilities to set up special savings accounts to pay for expenses related to their special needs.
In a video announcement, Schmitt said he was happy to join with Ohio, Vermont, Georgia, and Kentucky to create the lowest cost and most accessible ABLE program in the country.
“This partnership marks a major step forward in getting MO ABLE accounts up and running,” Schmitt said. “I look forward to working with you to get the word out about MO ABLE accounts and financially empowering individuals with disabilities.”
ABLE programs were federally enacted in 2014, and allowed those with disabilities to open tax-exempt savings accounts while still allowing those same individuals to use disability expenses. The money in those accounts remains tax-free so long as it is used for qualified disability expenses.
These new accounts will funtion like Missouri’s MOST College Savings plan in that anyone who contributes to MO ABLE accounts will be eligible for a tax deduction of up to $8,000 (or $16,000 if married and filing together).
“The MO ABLE program will be a game changer for countless Missouri families who face unique financial challenges due to disabilities,” said Cathy Brown, the 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.”