A state program that was launched this year to help save money for people with disabilities has already taken in many thousands of dollars in contributions.
Under the program, parents and grandparents can donate tax-free to a fund until the loved one with the disability reaches age 26.
State Treasurer Mike Fitzgerald says the fund can then be tapped as the person and his or her caregiver grow older.
“Now, a lot of these folks who are disabled, maybe they’re getting public assistance or whatever, they’re cut off at $2,000,” Fitzgerald says. “You can’t have it or the government will grab it. This allows them to save up to $100,000.”
The program, called IAble, allows an account to be opened for as little as $25. The program is modeled after College Savings Iowa which allows a tax break for saving for college.
The fund, which started in February, has already received $200,000 in contributions. Fitzgerald briefed Governor Kim Reynolds on the program during a recent budget hearing.
“This is important to a lot of the parents and grandparents,” he says. “As you get later in life, what’s going to happen to little Billy or little Mary, so this is a program to help families deal with that issue.”
Fitzgerald says Iowa Senator Chuck Grassley spearheaded enabling legislation for the program in Congress. Iowa is part of a 16-state coalition managing the contributions.
Thanks to Joyce Russell, Iowa Public Radio