Missouri State Treasurer Eric Schmitt has announced the launching of the MO ABLE to Work initiative. Using the MO ABLE savings platform empowers individuals with disabilities by allowing them to save more of their earned wages. Missouri can offer this initiative due to provisions included in the recent federal tax-reform package passed in late 2018.
According to a news release, with the MO ABLE to Work initiative, employed individuals with disabilities who have MO ABLE accounts can contribute up to $12,060 per year beyond the current limitations ($15,000 for 2018) if the difference is from personally-earned wages. This can allow an individual to save up to $27,060 per year in a MO ABLE account without harming their eligibility for means-tested benefit programs.
Also, the initiative allows MO ABLE account holders to claim the Saver’s Credit (a nonrefundable federal tax credit for eligible taxpayers for qualified retirement savings contributions) for contributions made to the account from earned wages.
Last year, Schmitt launched the MO ABLE disability savings program, which stands for Missourians Achieving a Better Life Experience. An individual can open an account at www.moable.com.