SC Able

A Look Forward to ABLE Savings in South Carolina

Passed by the General Assembly and signed into law by Governor Haley on April 29, 2016, South Carolina Achieving a Better Life Experience (ABLE) legislation has tapped the Office of State Treasurer Curtis M. Loftis, Jr. to research and make available tax-advantaged ABLE savings accounts in South Carolina. We are looking forward to providing South Carolinians access to ABLE accounts which will help individuals with disabilities and their family and friends save for future expenses, without jeopardizing existing government benefits.

Treasurer Loftis and the State Treasurer’s Office are investigating all options open to South Carolina citizens and actively researching programs launched by the four other states that currently provide ABLE plans. By exploring these current programs, we hope to provide the best options to South Carolina taxpayers with disabilities and their families. Once the programmatic aspects are determined, eligible South Carolinians will have all of the advantages of saving for qualifying disability expenses set forth in Section 529A of the Internal Revenue Code of 1986.

The State Treasurer’s Office wants to provide you with the most up-to-date information on our progress as we work to bring ABLE savings to South Carolina. You can access information as it becomes available on this website or sign up below to be sent updates via email.

Updates as of January 1, 2017

The State Treasurer’s Office is researching available plan options and hopes to announce additional information in mid-2017 about the launch of the South Carolina ABLE program.

If you have an immediate need to open an ABLE account, several other states have opened up their ABLE programs to residents of ANY state. You can research other ABLE programs on this website:

South Carolina residents who open an ABLE account with another state may still be eligible for a tax deduction if they file a South Carolina income tax return.

Once South Carolina launches its own program, if you have an account with another state’s ABLE program, and choose to do so, you can close that account and open one with South Carolina’s program.

Link to ABLE National Resource Center

Benefits of the ABLE Act

The Achieving a Better Life Experience (ABLE) Act of 2014 authorizes states to establish a qualified ABLE program to offer savings and investment options similar to college savings accounts to individuals with a disability and their families. The purpose of an ABLE account is to encourage and assist individuals and families to save private funds for the purpose of supporting individuals with disabilities to maintain health, independence and quality of life.

Who is eligible for the ABLE program?

1. Must be the account owner

2. Entitled to SSI or SSDI or approval by the Secretary of the Treasury

3. Blind or disabled before age of 26

*An eligible individual may only have one ABLE account

About Able

- $14,000 maximum annual contribution limit

- Tax-free earnings for funds spent on qualified expenses, however 10% additional tax on non-qualified distribution earnings.

- For the purposes of determining eligibility for SSI, money in an ABLE account in excess of $100,000 is considered an asset to the individual with a disability and may cause SSI benefits to be reduced or suspended. An account balance up to and including $100,000 is disregarded.

- Upon death of beneficiary, states may file claims for Medicaid reimbursement.

Key benefits of establishing an ABLE account include:

- The balance of an ABLE account is disregarded from means-tested federal programs.

- Earnings in an ABLE account are tax-free under Section 529A of the Internal Revenue Code, as long as the funds are used to pay for qualified disability expenses.

- Contributions into an ABLE account are tax deductible from your SC state income taxes.

An ABLE account is intended to supplement, but not replace, the benefits provided through private insurances, Medicaid, Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), the beneficiary’s employment, and other sources.

The ABLE Act allows for tax-free withdrawals from the account for qualified disability expenses:

  • Health
  • Education
  • Housing
  • Transportation
  • Legal Fees
  • Financial Management
  • Oversight & Monitoring
  • Funeral & Burial
  • Employment Training & Support
  • Assistive Technology & Personal Support Services
  • Other Expenses Approved by the Treasury Regulations

Sign Up For SC ABLE Updates

Sign up to receive more information about SC ABLE program developments and for notification of program launch dates.

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This website is provided without any representations about the impact of pending or future legislation. Nothing on this website constitutes, or is meant to constitute, advice of any kind. The information contained in this website is for general information purposes only and does not constitute tax or investment advice. Performance of the programs discussed herein is not guaranteed and is subject to market conditions. Carefully consider objectives, risks, charges and expenses before investing. As with any investment, it is possible to lose money by investing in the programs referenced herein.

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