People with disabilities can soon use savings plans
Lansing — Starting in November, Michigan residents with disabilities will be able to enroll in special tax-free savings accounts without jeopardizing their access to public assistance.
Lt. Gov. Brian Calley, who signed the legislation last year, announced Monday the state Treasury Department has finalized a contract with Florida-based TSA Consulting Group to manage the program.
The accounts will offer advantages similar to 529 college savings plans.
Distributions, including any earnings, will not be taxed if used for qualified disability expenses such as education, housing, transportation and job training. Money in the accounts will be disregarded so people with disabilities can still qualify for state and federal benefits.
The accounts will be known as Michigan Achieving a Better Life Experience, or MI-ABLE, plans.