Putting aside money for long-term expenses like college and retirement can be hard. The passage of the Achieving a Better Life Experience (ABLE) Act has positively impacted many lives since 2016, when the first states implemented ABLE plans. People living with disabilities now have the option to save money in tax-advantaged 529A-ABLE accounts and invest for the future without compromising important state and federal benefits. ABLE plans, together with 529 college savings plans -- both codified into the Internal Revenue Code’s Section 529 -- help individuals and families save for important expenses.
In addition, many states have recently launched or are in the process of launching state driven retirement savings plans. These plans – frequently referred to as Secured Choice plans or Auto-IRA programs – require employers to facilitate employee enrollment in a state-run ROTH IRA program if the employer does not offer a retirement plan to their employees. It is estimated that 57 million employees could be covered by these plans if fully implemented nationally.
Through Sumday®, BNY Mellon simplifies delivery of these plans by providing states with service delivery, service management and customer support. We helped introduce, convert and/or administer more than 20 programs, including features tailored for veterans, low-income individuals, those with disabilities, and even people without traditional bank accounts. We’ve developed smart, creative solutions with user-friendly features such as personalized gifting pages and pre-paid cards.