LOSFA Highlights the Importance of ABLE Accounts for ABLE Savings Day
Baton Rouge, La., — August 14 marks the second annual national Achieving a Better Life Experience Act (ABLE) Savings Day, hosted by the ABLE Savings Plans Network (ASPN) of the National Association of State Treasurers (NAST). ABLE Savings Day was created to raise awareness about ABLE accounts, which are tax-advantaged savings accounts for individuals with disabilities.
Louisiana’s ABLE 529A Savings Plan, also known as LA ABLE, is a program that allows individuals and families to save private funds to support persons with disabilities in endeavors to maintain health, independence, and quality of life. Opening an LA ABLE account can help increase access so that individuals with disabilities can save, invest, and plan for the future.
To celebrate #ABLESavingsDay, the Louisiana Office of Student Financial Assistance (LOSFA) will be highlighting LA ABLE by sharing important updates on our social media platforms and posting videos, resources, and other information highlighting the benefits of opening an ABLE account.
“The advantage of the LA ABLE account program is that it allows the individual to save without worrying about whether the funds in an account will be counted as an asset for purposes of determining eligibility for federal and state benefits programs such as Medicaid and Social Security,” said Porsche Harris, Director of START Programs.
An account owner can personally save up to $19,000 per year or save with help from family and friends. As long as the balance in an account does not meet or exceed $100,000, the assets in the account will not affect the account owner’s eligibility for social security disability and Medicaid benefits. ABLE accounts can be used for a wide variety of qualified disability expenses such as education, housing, transportation, personal support services, and legal fees.
Starting January 1, 2026, the age requirement of being diagnosed with a disability before the age of 26 will be raised to 46, giving more people access to ABLE programs and resources. Additionally, Act 110 of the 2025 Regular Session of the Louisiana Legislature provides for a state tax deduction of up to $2,400 per beneficiary for individual returns ($4,800 per beneficiary for joint returns) for deposits to LA ABLE accounts.
Visit https://www.able.osfa.la.gov to learn more about how opening an LA ABLE account can help people with disabilities and their families pay for everyday needs, save and invest with a tax-advantaged account, and prepare for the future.
Need one-on-one assistance? Email laable@la.gov to schedule a meeting.