In a world striving for inclusivity and equal opportunity, Michigan has introduced MiABLE—a program designed to support individuals with disabilities in achieving financial security and independence.
What is MiABLE?
MiABLE stands for the Michigan Achieving a Better Life Experience program. It was established in response to the federal ABLE Act of 2014, which allows states to create tax-advantaged savings accounts for individuals with disabilities. These accounts enable eligible individuals to save and invest money without jeopardizing their eligibility for crucial government benefits, such as Medicaid and Supplemental Security Income (SSI).
Key Features of MiABLE Accounts
- Tax Advantages:
- Tax-Free Earnings: The earnings on contributions to MiABLE accounts grow tax-free, similar to a Roth IRA. Withdrawals used for qualified disability expenses are also tax-free.
- State Tax Deduction: Contributions to MiABLE accounts are deductible on Michigan state taxes. Michigan state income taxpayers can claim up to a $5,000 deduction for single filers and $10,000 for joint filers for MiABLE contributions.
- Protection of Benefits:
- Funds in MiABLE accounts do not count as assets when determining eligibility for federal benefits programs like Medicaid and SSI, up to $100,000.
- Flexible Use of Funds:
- The money in a MiABLE account can be used for a wide range of qualified disability expenses, including education, housing, transportation, employment training, assistive technology, health care, financial management, and more.
- Contribution Limits:
- Individuals can contribute up to $18,000 in 2024, subject to periodic adjustment for inflation. Additionally, working individuals with disabilities can contribute $12,060 in 2024 beyond this annual limit if they have earned income. A MiABLE account is considered a 529 account by the IRS, and the maximum contribution limit for all Michigan 529 plans combined for a designated beneficiary is $500,000.
- Easy Management:
- MiABLE accounts are designed to be user-friendly, with straightforward online management options, making it easier for individuals and their families to track and utilize their savings.
- Family/Friends Contributions
- Ugift® is a feature of your ABLE account that allows friends and family to contribute to your savings in lieu of traditional gifts. It's simple to use - just log in to your account to find your code and share it with friends and family, who can use it at UgiftABLE.com to contribute directly into your account.
Eligibility Criteria
To open a MiABLE account, an individual must:
Have a qualifying disability that was present before the age of 26 (Changes to age 46 on January 1, 2026).
- Be entitled to benefits based on blindness or disability under the Social Security Act, or have a similarly severe disability documented by a physician.
Why MiABLE Matters
The introduction of MiABLE is a game-changer for many Michigan residents. Historically, individuals with disabilities faced strict asset limits to maintain eligibility for critical public benefits. This created a paradox where saving for the future could lead to the loss of necessary support. MiABLE breaks this cycle, offering a safe and effective way for individuals to build financial security.
Real-Life Impact
Consider Sarah, a young woman with cerebral palsy. Before MiABLE, Sarah's parents were wary of saving money in her name, fearing it would disqualify her from Medicaid. Now, Sarah has a MiABLE account where her family contributes regularly. This account is being used to cover her specialized therapies and to save for a modified vehicle, enhancing her independence and quality of life.
How to Get Started
Opening a MiABLE account is a straightforward process. Interested individuals or their guardians can visit the MiABLE website, where they can find detailed information, application forms, and guidance on how to manage their accounts effectively.
Conclusion
MiABLE represents a significant step toward financial empowerment for individuals with disabilities in Michigan. By providing a safe, tax-advantaged way to save, it opens up new possibilities for independence and improved quality of life. For individuals with disabilities and their families, MiABLE is more than just a financial tool; it's a gateway to a more secure and fulfilling future.
For more information, visit the official MiABLE website and take the first step toward financial independence today.
