New PA Law Allows Tax-Exempt Savings For People With Disabilities

by Tony Romeo

HARRISBURG, PA (CBS) -- Governor Wolf this week signed into law a bill intended to help people with disabilities save money.

The bill signed by Governor Wolf is known as ABLE. The Achieving a Better Life Experience Act. Wolf spokesman Jeff Sheridan says the new law will allow for people with qualifying disabilities to have tax-exempt savings accounts.

"Pennsylvanians with disabilities can now achieve greater fiscal self-sufficiency – which is very important – without the risk of impacting their eligibility for important benefits that they receive. So that is why the governor was proud to sign this bill," said Sheridan.

The new law allows for tax-free savings of up to $14,000 each year that can be used for disability-related expenses such as health care, housing, and transportation without jeopardizing eligibility for programs people with disabilities depend on. Accounts would also be exempt from inheritance tax.