About Palmetto ABLEWhat is a Palmetto ABLE® Account?
A Palmetto ABLE account is an investment account available to eligible individuals with disabilities. Palmetto ABLE accounts are made possible by the federal Achieving a Better Life Experience ("ABLE") Act. Palmetto ABLE accounts allow individuals with disabilities to save and invest money without losing eligibility for certain public benefits programs, like Medicaid or SSI. Earnings in your Palmetto ABLE account are not subject to federal income tax, so long as you spend them on "Qualified Disability Expenses."
Palmetto ABLE accounts have some similar features to traditional bank accounts, but they are not checking or savings accounts. Palmetto ABLE accounts are investment accounts, similar to 529 college savings accounts or 401(k) retirement accounts. When you deposit money into your Palmetto ABLE account, your money will be invested in different options that you choose. While you can still withdraw and spend your money whenever you need it, Palmetto ABLE accounts also allow you to grow your money and to save long-term for disability expenses.
Federal and State Legislation
The Achieving a Better Life Experience ("ABLE") Act was passed by Congress in December of 2014. It is the federal legislation that allows families and individuals with disabilities the opportunity to create tax-advantaged accounts that can be used to help maintain health, independence, and quality of life. To read the legislation, visit this link.
South Carolina HB3768 established the Palmetto ABLE Savings Program. The Office of South Carolina State Treasurer Curtis Loftis administers this program.
The Internal Revenue Service (IRS) has provided proposed regulations for ABLE Accounts. These proposed regulations offer guidance to states, beneficiaries, and other interested parties. To read the proposed regulations, visit this link.