Author: Deborah Goodkin, Managing Director, Savings Plans, First National Bank of Omaha
This week, friends and families will come together to share food and give thanks for the many good things in life. Before we know it, amidst celebrations, reunions and much-needed vacations, the end of the year will be upon us, and we’ll be getting ready for the many future joys and celebrations of the new calendar year.
Before this 2020 New Year planning begins in earnest, we at Enable encourage you to take a moment to focus on the last few weeks of 2019. In today’s blog, we provide an end of year checklist to help make sure you’re getting the most out of your Enable Savings Plan account—both today and for years to come.
Take Advantage of Tax-Deferred Growth
One of the greatest advantages to saving with Enable is that Account Owners benefit from compounded, income tax-deferred growth, also known as “growth on growth.” Because Enable account earnings are state and federal income tax-deferred, the full earnings amount remains in your account and grows with no money being subtracted to pay current tax obligations. That means earnings happen more tax efficiently, helping to increase your account value even faster and maximize earnings potential associated with market growth.
Spend Where it Counts with Tax-Free Withdrawals
Withdrawals from your Enable account are tax-free when used for qualified disability expenses, meaning your savings go where you need them most. While planning payments, make sure to direct your Enable funds to these qualified expenses to optimize your savings.
What’s considered a qualified disability expense? Under the Able Act, it’s defined as an expense related to the disability of the Eligible Individual. This covers a wide range of categories that extend beyond medical expenses, including education, service animals, housing, transportation, financial management and administrative services and basic living expenses. Click here to explore the full list of qualifying expenses.
Save Big on State Income Tax
In addition to tax-deferred growth and tax-free withdrawals, investing with Enable can also have significant state income tax benefits. Account Owners in Nebraska may be eligible for an annual state income tax deduction of up to $10,000 for Enable contributions, or $5,000 per spouse if filing separately.
To take advantage of the Nebraska state income tax deduction this year, your contribution must be submitted online or postmarked by December 31 before 10:59pm CT, as well as reported on your Nebraska state income tax return.
Share the Journey with Gift Contributions
The holidays are all about sharing love and support with friends and family. This year, encourage loved ones to give the gift of financial independence.
Through Ugift, your Enable account is assigned a unique code that can be used to make contributions with a check or electronic transfer. Unlike many other gifting programs, gift givers don't have to join, register or pay a service fee, and they don’t need any additional information about your account.
With a gift certificate contribution, loved ones can fill out and mail a contribution coupon to Enable, and download and print a card to give for the occasion.
Happy holidays, and happy saving! If you have any questions regarding your account, contact the Enable team via email at clientservices@enablesavings.com or by calling 1-844-ENABLE4.