[NFBNJ] From DHS eClips: Tax-Free Savings Accounts for Individuals with Disabilities

Tue Jun 19 15:32:40 UTC 2018

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State Launches Tax-Free Savings Programs to Help Disabled People

NJ Spotlight, June 18, 2018-By: Lilo H. Stainton

NJ ABLE gives people with disabilities as way to 'save for vital day-to-day 
expenses,' without imperiling Medicaid coverage, similar programs

Disabled people in New Jersey will have a new financial tool to help them 
save money to pay for childcare, transportation, assistive technology, and 
other necessary expenses, thanks to a program state officials plan to 
announce today.

The New Jersey Department of Human Services will launch a tax-free savings 
program that will allow qualified individuals to collect funds to cover 
costs related to their disability, without preventing them from qualifying 
for Medicaid and other state and federal social-service programs with strict 
income limits, according to information provided to NJ Spotlight in advance. 
The program - called NJ ABLE, for Achieving a Better Life Experience - is 
based on a federal initiative now underway in three-dozen states.

Many disabled individuals and their families depend on a wide variety of 
public benefits - including Medicaid, food stamps or SNAP, and Social 
Security - most of which involve an income ceiling. These programs also 
require participants to report savings and other assets worth more than 
$2,000, according to the ABLE National Resource Center. That can make it 
hard to amass the capital needed to pay for services not covered by 
insurance or government programs.

[cid:image001.jpg at 01D4070B.BD60CF20]Image: Carole Johnson, commissioner of 
the Department of Human Services

"This is an exciting new program for New Jersey that gives individuals with 
disabilities and their families the opportunity to improve their financial 
security," DHS Commissioner Carole Johnson said. "They deserve the peace of 
mind that comes with being able to save for vital day-to-day expenses. 
Individuals with disabilities can do anything - and NJ ABLE is now another 
tool to help them live full and independent lives."

Making New Jersey ABLE

The national ABLE initiative was created in 2014 under former President 
Barack Obama and the following year New Jersey passed legislation - 
championed by Sen. President Steve Sweeney (D-Gloucester), Assemblywoman 
Pamela Lampitt (D-Camden), and others - to create its own program. Former 
Gov. Chris Christie signed it into law in January 2016, and the program was 
supposed to take effect in 10 months, but was not fully established until 
now.

Nationwide, the District of Columbia and 36 states - including Pennsylvania 
and New York - already have ABLE Account programs, according to recent 
reports. Other states, including Texas and California, are in the process of 
establishing similar efforts.

In New Jersey, some 22,000 disabled residents receive services through the 
DHS, and the state has been working in recent years to help more of these 
individuals remain independent. In addition, the state is now in the midst 
of a massive shift in how it reimburses providers who work with disabled 
clients, a process designed to give individuals and families more power in 
determining care.

Increasing independence

Disabled individuals, their families and advocate organizations welcomed the 
addition of the ABLE Account, which they said will also help increase 
independence. "People with disabilities and their families are delighted to 
learn that ABLE accounts are now a viable option in New Jersey," said 
Mercedes Witowsky, chair of the New Jersey Family Support Planning Council, 
one of several supporters who praised the program in a draft press release 
prepared by the DHS.

"People with disabilities are often among the poorest citizens in our 
state," added Dan Keating, executive director of the Alliance for the 
Betterment of Citizens with Disabilities. "NJ ABLE will allow them to save 
for their future without jeopardizing their benefits."

According to the National Resource Center, ABLE Accounts are open to 
individuals with significant disabilities that developed before they were 26 
(although they can sign up at any age.) Family, friends, and others can 
contribute up to $15,000 each - the maximum tax-free gift under federal 
law - into the fund, and the balance does not count toward the individual's 
total income for federal or state tax purposes; interest that compounds is 
also tax-free.

Suzanne Buchanan, executive director of Autism New Jersey, said the 
organization gets daily calls from parents who are struggling "financially 
and emotionally" to meet their children's needs, and ABLE Accounts provide 
them a new financial option to improve economic stability and peace of mind.

"These accounts will allow individuals to work more, to save more, and to 
plan more," added Thomas Baffuto, executive director of The Arc of New 
Jersey, which provides services and supports for individuals with 
disabilities.

According to the DHS, the NJ ABLE accounts can be used to pay for expenses 
incurred as a result of living with a disability. These include, but aren't 
limited to, education, health and wellness, housing, transportation, legal 
fees, financial management, job training and support, assistive technology, 
and personal support services.

Some states set limits on the totals that can be collected in these 
accounts, usually more than $300,000, and establish a minimum threshold for 
tax-free status. The state Department of Treasury will work with the DHS to 
establish the parameters of the New Jersey program, which may be 
administered and operated by a third party.

N.J. Launches NJ ABLE Accounts to Help Individuals with Disabilities

Patch.com, June 18, 2018-By: Tom Hester

Human Services Commissioner Johnson Unveils Tax-Free Savings Accounts for 
Individuals with Disabilities

(TRENTON) - New Jersey Human Services Commissioner Carole Johnson on Monday 
announced the launch of a major new program to help individuals with 
disabilities become more independent and better thrive in their communities.

With the newly launched NJ ABLE program, individuals with disabilities can 
save tax-free for eligible expenses such as education, housing and 
transportation without losing eligibility for Medicaid and other benefits.

Residents can now visit here<https://savewithable.com/nj/home.html> to learn 
more and begin saving.

ABLE stands for Achieving a Better Life Experience.

"This is an exciting new program for New Jersey that gives individuals with 
disabilities and their families the opportunity to improve their financial 
security," Johnson said. "They deserve the peace of mind that comes with 
being able to save for vital day-to-day expenses. Individuals with 
disabilities can do anything - and NJ ABLE is now another tool to help them 
live full and independent lives."

The tax-free NJ ABLE accounts will not be included as an asset or income 
when determining an individual's eligibility for state assistance programs.

The program also offers a range of investment options.

The NJ ABLE accounts can be used to pay for expenses incurred as a result of 
living with a disability. Qualified expenses include, but are not limited 
to, education, health and wellness, housing, transportation, legal fees, 
financial management, job training and support, assistive technology and 
personal support services.

The earnings on NJ ABLE investments are federally tax-deferred and tax-free, 
if used for qualified disability expenses. This can help savings compound.

"With NJ ABLE, individuals with disabilities will have a new option to help 
plan for real-life costs that concern every family," Johnson said. "Saving 
for the future has never been more important, and just as families save for 
retirement or college, NJ ABLE will help provide fiscal self-sufficiency - 
without putting eligibility for benefits at risk. The Murphy Administration 
looks forward to seeing individuals with disabilities benefit from NJ ABLE 
for years to come."

The launch was welcomed by families and advocates.

Individuals with disabilities who receive supports from DHS said they're 
excited by the idea of being able to save without losing access to benefits 
and the opportunities they will have as a result.

"I am meeting about budgeting with staff because it is important to me," 
said Annie Sims of Elizabeth. "I like NJ ABLE because I will be able to have 
money for the things I need like surgery or going to school. My family can 
even give me money to help me save so I can have a better life without 
thinking, if they help me I'll lose my Medicaid or other benefits."

"I think NJ ABLE could help me save for a computer or other things that can 
help me read," said Marcella Truppa of Cranford. "You never know, I might 
even need a lawyer in the future. Without a savings account, I wouldn't be 
able to pay for one. My dad passed away and he really wanted to help me to 
save for the future, but he really couldn't do much because I would lose my 
important benefits if he did. Now my family can help to save for the 
important things without worrying that I'll lose something I need like my 
Medicaid."

"I feel like it will help me because I want to be able to save up to learn 
different things," said Mark Bloom of Cranford. "I want to get a better 
education. I also want to be able to travel to conferences where I can 
learn, and I think NJ ABLE could help me to save for it."

"I love living by myself and NJ ABLE can help me save," said Carol Petties 
of Elizabeth. "I can also save for any health issues that might come up as I 
get older."

"As a parent, I am grateful for the opportunities my daughter Natalie, who 
has intellectual and developmental disabilities, will have now that New 
Jersey is moving forward with ABLE accounts," said Kelly Borden-Joye, who 
lives in Monmouth County. "Staying within the resource requirements for 
federal programs like Medicaid, makes it difficult to save for her future 
and for her to afford other important components that make a meaningful life 
in the community a reality for Natalie and all residents with intellectual 
and developmental disabilities living throughout the state. These accounts 
will make a big difference in the lives of many and I look forward to 
creating one for Natalie in the near future."

"Every day on our helpline, Autism New Jersey supports parents across the 
state who struggle financially and emotionally to meet their children's 
treatment and service needs," said Dr. Suzanne Buchanan, Autism New Jersey 
executive director. "It's clear that Governor Murphy and the Department of 
Human Services are sympathetic to these struggles and are demonstrating 
their commitment to New Jersey families of individuals with developmental 
disabilities through the establishment of these financial savings accounts 
and emotional safety nets."

"People with disabilities and their families are delighted to learn that 
ABLE accounts are now a viable option in New Jersey," said Mercedes 
Witowsky, chair of the New Jersey Family Support Planning Council. "The 
ability for a person with a disability to save money toward expenses for 
housing, education, transportation, employment training, health and 
wellness, financial management, legal fees, and more while protecting state 
disability related payments is a positive step forward in improving the 
quality of life for people with disabilities and their families."

"With the launch of the New Jersey ABLE accounts, residents with 
intellectual and developmental disabilities will have now have access to a 
very important savings tool," said Thomas Baffuto, executive director of The 
Arc of New Jersey. "These accounts will allow individuals to work more, to 
save more and to plan more. The tax-advantaged savings accounts will give 
individuals with I/DD more freedom to live an integrated life, achieve their 
goals and to afford education, housing, transportation and other expenses 
that may be hard to pay for while also maintaining eligibility for 
critically-important federal programs and benefits."

"People with disabilities are often among the poorest citizens in our 
state," said Dan Keating, executive director of the Alliance for the 
Betterment of Citizens with Disabilities. "NJ ABLE will allow them to save 
for their future without jeopardizing their benefits."

The program originates from the federal Achieving a Better Life Experience 
(ABLE) Act of 2014 signed into law by President Obama. New Jersey then 
passed a law to join the program. The New Jersey bill was sponsored by 
Senators Stephen Sweeney and Dawn Marie Addiego and Assembly members Pamela 
Lampitt, Louis Greenwald, Valerie Vainieri Huttle, Daniel Benson and Vincent 
Mazzeo.

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