Voya Financial Advocates for Greater Awareness of ABLE Accounts for Individuals with Disabilities

Voya Financial (VOYA) emphasizes the vital role of ABLE accounts in providing financial support to individuals with disabilities. CEO Heather Lavallee has pointed out the substantial underutilization of these tax-advantaged savings accounts, despite the impressive rise in labor force participation among people with disabilities, which has reached an all-time high of 42.5%. Alarmingly, only around 2% of employees in the U.S. have a clear understanding of the advantages of ABLE accounts, which could significantly enhance financial stability for those who qualify.

Raising Awareness of ABLE Accounts

ABLE accounts allow individuals with disabilities to save up to $100,000 without jeopardizing their eligibility for essential government programs such as Medicaid and Supplemental Security Income. Distributions from these accounts can be tax-free when utilized for qualified expenses like housing, education, and assistive technology. With the Centers for Disease Control indicating that over 70 million adults in the U.S. live with a disability, the need for greater awareness and education around ABLE accounts cannot be overstated.

Upcoming Changes to Eligibility Criteria

Looking ahead, Lavallee notes that eligibility criteria for ABLE accounts are set to change in 2026, when the age limit will expand from 26 to 46 years. This adjustment means that individuals whose disabilities occurred before the age of 46 will be able to open an ABLE account, which could significantly broaden access to these crucial financial resources. The story of Sena Pottackal, a PR consultant with multiple disabilities, illustrates this shift; she previously believed she did not qualify but will now be able to take advantage of these savings opportunities.

In conclusion, as Voya Financial leads discussions around financial literacy for individuals with disabilities, the focus on ABLE accounts highlights the importance of strategic savings options that do not compromise essential government benefits. By increasing awareness and understanding of these accounts, Voya aims to support the financial well-being of a unique minority group that can benefit from such financial tools.