About STABLE Accounts
What is a STABLE Account?
A STABLE Account is an investment account available to eligible individuals with disabilities. STABLE Accounts are made possible by the federal Achieving a Better Life Experience (“ABLE”) Act. STABLE Accounts allow individuals with disabilities to save and invest money without losing eligibility for certain public benefits programs, like Medicaid, SSI, or SSDI. Earnings in your STABLE Account are not subject to federal income tax, so long as you spend them on “Qualified Disability Expenses.”
STABLE accounts have some similar features to normal bank accounts, but they are not checking or savings accounts. STABLE Accounts are investment accounts, similar to 529 college savings accounts or 401(k) retirement accounts. When you deposit money into your STABLE Account, your money will be invested in different options that you choose. While you can still withdraw and spend your money whenever you need it, STABLE Accounts also allow you to grow your money and to save long-term for disability expenses.
Federal and Missouri ABLE Legislation
The Achieving a Better Life Experience ("ABLE") Act was passed by Congress in December of 2014. It is the federal legislation that allows families and individuals with disabilities the opportunity to create tax-advantaged accounts that can be used to help maintain health, independence, and quality of life. To read the legislation, visit this link.
Missouri Revised Statutes §§ 209.605-209.645 establishes the rules for MO ABLE. The Office of Missouri State Treasurer Eric Schmitt administers this program.
The Internal Revenue Service (IRS) has provided proposed regulations for STABLE Accounts. These proposed regulations offer guidance to states, beneficiaries, and other interested parties. To read the proposed regulations, visit this link.