MISSOURI (KFVS) - Missouri treasurer Eric Schmitt announced tax-advantage savings accounts for expenses that relate to disabilities and special needs.
The program is called MO ABLE and is part of an agreement with four other states (Ohio, Vermont, Georgia and Kentucky).
MO ABLE accounts will function in a fashion similar to Missouri's MOST 529 College savings plans. Missourians who contribute to MO ABLE accounts will be eligible for a tax deduction of up to $8,000 or $16,000 if married and filing jointly. The accounts will launch in the coming months.
"As the parents of a twelve year-old who faces the challenges of several profound disabilities, my wife Jaime and I know just how important it is that we offer the best ABLE program possible for Missouri families," said Schmitt. "By entering this partnership, we are ensuring the MO ABLE program will feature the lowest cost and highest quality of any in the nation."
Money saved in a MO ABLE account is not subject to federal income tax as long at the money is spent on qualified disability expenses.
Video of Schmitt's announcement is available here.