New Jersey Tax-Free Savings Accounts for Individuals with Disabilities (ABLE)

New Jersey

~~Individuals with disabilities can now save tax-free for eligible expenses, such as education, housing and transportation, without losing eligibility for Medicaid and other benefits.

N.J. Department of Human Services recently launched NJ ABLE (Achieving a Better Life Experience), which enables participants to establish tax-free accounts that will not be included as an asset or income when determining an individual’s eligibility for state assistance programs.

The earnings on NJ ABLE investments are federally tax-deferred and tax-free, if used for qualified disability expenses. This can help savings compound. The program also offers a range of investment options.

State Policies & Initiatives: 
Policy
Systems: 
  • Other
Topics: 
  • Asset Development / Financial Capability
Other: 
  • New Jersey Department of Health and Human Services
Date Enacted: 
07/19/2018
CITATIONS: