SOS Care CEO Sarah Pope’s adult sons, Ben and Liam, both of whom are autistic, were able to save for a new transport van thanks to the Palmetto ABLE savings program. (Video screenshot courtesy of SC Treasurer's Office)
COLUMBIA — Imagine needing to save for a major expense — like a car or rental security deposit — but you’re not allowed to keep more than $2,000 in your bank account at any given time.
That’s a reality for some 95,760 South Carolinians who rely on long-term federal disability benefits. For them, exceeding that $2,000 cap means losing their income.
“This puts people in a difficult situation, because their savings jeopardized their eligibility for disability-related benefits,” said state Treasurer Curtis Loftis.
“It’s a world that most people don’t know anything about,” he added. “But for some, that benefit is their only lifeline.”
But a recently expanded savings program — the Palmetto ABLE savings account — can help fill in the gaps. It’s overseen by the treasurer’s office, which is essentially the state’s bank.
The program allows South Carolinians with a federally qualified disability, as well as their friends and family, to make tax-deductible deposits into savings accounts to help cover daily expenses that may exceed their monthly benefits. Before Jan. 1, no one newly diagnosed after turning 26 qualified. That’s now 46.
That broadens access to the vital savings tool to people who experience a traumatic brain or spinal cord injury later in life, develop post-traumatic stress disorder, or have a later onset of a debilitating disease such as lupus or multiple sclerosis or other physical, behavioral or intellectual disability.
South Carolinians helped by the program include Sarah Pope and her adult sons, both of whom are autistic. They needed a new transport van so their caregiver could safely drive them around their hometown of Myrtle Beach. Some of their favorite activities include going for walks on the beach and going to Grand Park and Savannah’s Playground.
Nearly a decade ago, saving for a down payment on the transport van, which allows them to be part of the community rather than isolated at home, would have been impossible for the single mom and her sons.
“There was no way to have a safety net. No way for them to budget or save or plan,” said Pope, CEO of SOS Care, a Murrells Inlet nonprofit helping people with autism and intellectual disabilities live independently.
But in 2017, three years after Congress first established the program under the Achieving a Better Life Experience (ABLE) Act, South Carolina adopted the savings program, launching it in the Palmetto State.
Pope’s sons — Ben, 31, and Liam, 24 — are among 4,000 South Carolinians who have since signed up.
“I don’t know what I’d be able to do if I didn’t have this for my kids,” she told the SC Daily Gazette last week. “These kids are pretty expensive, and it doesn’t end with high school or college.”
Any money in ABLE accounts — up to $20,000 annually for someone unable to work and up to $35,650 for those capable of holding a job — doesn’t count against their monthly income cap for receiving disability benefits. The account also earns tax-free investment interest, which depends on the type of account they open.
The accounts have a lifetime limit of $501,000 in South Carolina.
The ABLE Age Adjustment Act, passed by Congress in December 2022 and effective Jan. 1, raised the initial age eligibility for the savings accounts by 20 years.
As of 2024, more than 187,000 people with disabilities nationwide had opened an ABLE account, according to the U.S. Social Security Administration. That’s only about 3% of the total number of individuals eligible under the previous age limits. The expansion will add another 6 million people to the eligibility list, the agency previously estimated.
When one of Pope’s sons moved into the Oak Tree Farm affordable housing community that was built by SOS Care, the nonprofit where she is CEO, he could tap into his ABLE account to buy clothing and groceries, pay rent and even save for a new television.
Other expenses the accounts have helped with over the years include therapy groups. Those require specialized sensory equipment and a respite caregiver. A lot of those are out-of-pocket expenses not covered by Medicaid.
Pope said ABLE savings are not a replacement of tools, such as a special needs trust fund, that cover lifelong care. But it has helped her plan for her own retirement, instead of just her sons’ needs.
“I share information about it with anyone I can,” she said, including the more than 2,000 families SOS Care helps annually across the Grand Strand and Charleston.
Loftis called the program a “complete game changer,” especially for middle- and working-class families who don’t qualify for some income-based programs. Instead of taking the afternoon off from work to pick up their child, parents can hire out transport.
“If they get good care, they can have good lives,” he said. “It’s the biggest home run.”
Courtesy of South Carolina Daily Gazette
