(Image source from: Inside Philanthropy)

Human Services Commissioner Carole Johnson proclaimed on Monday that people with disabilities or their families will now be permitted to create a tax-free savings account to pay for housing, transportation, and other services to aid them to lead independent lives.

The Medicaid and long-term social security disability programs do not permit recipients to hold more than $2,000 in assets.

In New Jersey, the savings plan is available known as Achieving a Better Life Experience (ABLE), protects people from losing their benefits by letting them save money for expenses not covered by their monthly stipends, Johnson said.

"With NJ ABLE, individuals with disabilities will have a new option to help plan for real-life costs that concern every family," he added.

"Saving for the future has never been more important, and just as families save for retirement or college, NJ ABLE will help provide fiscal self-sufficiency - without putting eligibility for benefits at risk. The Murphy Administration looks forward to seeing individuals with disabilities benefit from NJ ABLE for years to come."

According to Johnson's statement, the eligibility criteria for getting benefits is a person should have acquired their disability before age 26 and you qualify for Medicaid or Social Security benefits or have been diagnosed with blindness.  

"Every day on our helpline, Autism New Jersey supports parents across the state who struggle financially and emotionally to meet their children's treatment and service needs," Suzanne Buchanan, Autism New Jersey executive director, said.

"It's clear that Gov. Phil Murphy and the Department of Human Services are sympathetic to these struggles and are demonstrating their commitment to New Jersey families of individuals with developmental disabilities through the establishment of these financial savings accounts and emotional safety nets," Buchanan said.

According to the announcement, the qualified expenses include education, housing, health and wellness, legal fees, transportation, financial management, job training and support, assistive technology, and personal support services. people are permitted to save up to $100,000 tax-free, under the program.

"People with disabilities are often among the poorest citizens in our state," said Dan Keating, executive director of the Alliance for the Betterment of Citizens with Disabilities. "NJ ABLE will allow them to save for their future without jeopardizing their benefits."

In 2014, under the savings program, the federal law was created while New Jersey passed its own law so its residents could participate.

By Sowmya Sangam