About STABLE Kentucky
In December 2016, the Treasury launched STABLE Kentucky. STABLE Kentucky Accounts allow Kentuckians with disabilities to save and invest money without losing access to benefits they receive such as Medicaid or SSI. Prior to the creation of STABLE Kentucky Accounts, individuals could only save up to $2,000 at a time without jeopardizing the benefits they received. Now, with STABLE Kentucky, account holders can save $16,000 annually without losing benefits. Eligible employed account holders can also save an additional $12,880 annually for an annual savings of up to $28,880.
STABLE Kentucky is Kentucky's implementation of the federal Achieving a Better Life Experience (“ABLE”) Act, which was passed by Congress in 2014. The program operates at no additional cost to Kentucky taxpayers thanks to a partnership the Kentucky Treasury reached with the Ohio Treasurer's Office.
These tax-advantaged savings accounts allow Kentuckians with disbilities who are 26 or younger, or their families on their behalf, to set aside money to use on qualified disability expenses such as education, healthcare, housing, transportation, and more. Earnings in STABLE Kentucky Accounts are not subject to federal income tax, so long as funds are spent on qualified disability expenses. The accounts are also tax-free at the state level, thanks to a bill the Treasury successfully advocated for during the 2018 KY General Assembly Session.
STABLE Kentucky Accounts have similar features to standard bank accounts, but can also be investment accounts, similar to 529 college savings accounts or 401(k) retirement accounts. When a participant deposits money into their STABLE Kentucky Account, the money can be saved in an FDIC insured option or invested in different options chosen by the participant. While participants can still withdraw and spend money as needed, a STABLE Kentucky Account also allows money to grow and save long-term for disability expenses.
For more information about STABLE Kentucky, to determine eligibility for an account, or to open an account, please visit the STABLE Kentucky website.