How to enABLE inclusive savings in the workplace

In addition to being the right thing to do for the community, being inclusive of people with disabilities and special needs and caregivers has a direct impact on a company’s recruitment, retention and business results¹.

ABLE accounts are unique tax-advantaged savings and investment accounts designed to improve quality of life for a person with a disability without interrupting government benefits. An individual with a disability onset prior to age 26 may be eligible to contribute to an ABLE account. Caregivers, loved ones and employers also can contribute to an ABLE account for an eligible individual.

ABLE accounts also can be a no- or low-cost workplace benefit for inclusive employers to offer their employees in the disability community. Employers can provide employees access to information and guidance on ABLE accounts and encourage direct deposit to the program of choice for employees.

With industry-leading educational content, webinars and information available at voyacares.com and through the Voya Cares® program, employers have an innovative partner to help their employees understand ABLE accounts and help employers add an ABLE program to their benefits offerings.

Traditional workplace benefits may exclude employees with disabilities

Many existing employer benefit and retirement solutions unintentionally may exclude employees with special needs or disabilities. Because they frequently opt out of valuable employer-sponsored benefits to maintain their government benefits eligibility, employees with disabilities or special needs may face serious short-term and long-term ramifications for savings accumulation and tax benefits. In addition, employees who opt out also may be giving up their employers’ matching contributions, often regarded as “free money” for those who participate.

The need for employee benefits that can help improve quality of life isn’t limited to employees with disabilities. Many caregiver employees are looking for ways to relieve the stress of providing for the day-to-day and long-term care needs of their loved ones without compromising the caregiver’s own financial goals.

Achieving a Better Life Experience (ABLE) accounts in the workplace

Many people with disabilities or special needs and their caregivers rely on public assistance programs, like Medicaid and Supplemental Security Income (SSI), to help cover the day-to-day costs of care. These programs have eligibility requirements that force recipients to make difficult financial tradeoffs. For example, SSI recipients must keep assets, including all bank accounts, individual retirement accounts, and Health Savings Accounts (HSAs) below $2,000, limiting financial independence.

Now, ABLE account holders also can accumulate up to $100,000 in an ABLE account without affecting their benefit payments from SSI. Individuals can also accumulate up to $500,000 or more without interrupting their medical coverage and other supports through Medicaid, depending on specific state limits. This ability to save without affecting government benefits eligibility can make all the difference for those in the disabilities community who have long been discouraged from saving or investing their money due to strict asset limits.

Even those adults who have a disability but don’t qualify for Medicaid or SSI can benefit from ABLE accounts for the tax advantages that may be available, including tax-deferred growth, tax-free withdrawals, state-tax deductions or credits (in some states) and even the federal Saver’s Credit.

Employers can offer ABLE account education, support and contributions

Offered through the workplace, disability inclusive employers can provide their employees with ABLE account education, access and direct payroll deduction for contributions at no cost. Employers who truly are leaders in the area of disability inclusion can take the added step of contributing seed or matching contributions to their employees’ ABLE accounts, as a true alternative or complement to an employer-sponsored retirement plan for employees with disabilities and special needs and their caregivers.

To learn more about ABLE accounts and how they fit into an employer benefit program, see how employers can enABLE savings and enhance inclusion (PDF).