If you’re a Louisiana resident with a disability, it’s essential to access all the benefits and programs you’re entitled to. In addition to healthcare assistance, you may have heard of ABLE accounts. But what exactly are they? Could you qualify for one? Read on to learn more about Louisiana ABLE savings accounts, specifically tailored to Louisianians with disabilities.
What are Louisiana ABLE Accounts?
Louisiana Achieve a Better Life Experience (ABLE) is an account program that allows eligible residents with disabilities to build up tax-free savings. And they get to do it without losing their other government-provided benefits. This savings plan is known as a 529A plan, and it is only available to select residents.
There are three main account types available, including:
- Short Term Liquidity
- Short to Intermediate Term Income
- Long Term Investment
Each plan comes with unique terms, conditions, benefits, and risks. To learn more about each of these plan types, go to this deposit and investment options page.
What Can the Saved Funds Be Used For?
ABLE program participants can use ABLE account funds for a wide variety of disability-related expenses. Approved expenses include:
- Housing
- Transportation
- Tuition
- Support services
- Health, Prevention, and wellness
- Legal fees
- And more
Note: When you plan to withdraw money from the account to pay for housing, it must be done as close to the payment due date as possible, or else it may affect your SSI benefits.
Unqualified Expenses
If you use the funds to pay an expense that’s not qualified, two things will happen:
- The withdrawal will be taxed as income.
- You will have to pay a 10% tax penalty.
So, it’s best to only use the funds on qualified expenses.
Who is Eligible for an ABLE Account in Louisiana?
Now that you have a good idea of what the Louisiana ABLE program entails, it’s time to address the issue of eligibility.
To get an ABLE account, you must be a Louisiana citizen with a valid social security number and meet the below requirements:
- Developed the disability before the age of 26 AND is eligible for SSDI; OR
- Your intended designated beneficiary has a signed diagnosis from a physician proving disability and is able to provide it to the LA ABLE program or the IRS
Qualifying disability categories include:
- Intellectual disabilities
- Developmental disorders
- Psychiatric disorders
- Congenital anomalies
- Nervous disorders
- Respiratory disorders
For more information about qualifying disabilities and general eligibility criteria, go to the LA ABLE website.
How to Access LA ABLE Benefits
The enrollment period for the LA ABLE program is ongoing, so you don’t have to wait to apply. To access Louisiana ABLE program benefits, you’ll submit an application to the LA ABLE program. You can do so by paper application or online.
If you choose to apply via paper application, the program leadership recommends that you include a deposit of $10 along with it. If you don’t, you have six months to do so after approval of your application.
For additional questions related to Louisiana ABLE accounts, browse frequently asked questions, call the ABLE program directly at 800-259-5626 and press “2”, or send them an email at laable@la.gov.
