Financial Resources for Your Family

Bath & Body Works wants to ensure your family is financially secure, which is why we offer the ABLE Savings Account Resource and 529 Tuition Savings Plans to give you the support you need:

ABLE Savings Account Resource

An ABLE Savings Account is an easy and accessible way to invest and save for qualified disability expenses.

  • Make annual contributions up to $18,000 for 2024 (up to $32,580 per year for a designated beneficiary who is employed and has employment income)*
  • Choose from a range of investment options
  • Use your account to save and pay for qualified disability expenses over the short and long term

You are eligible for an Attainable® account if you are already receiving benefits under Supplemental Security Income (SSI) and/or Social Security Disability Insurance (SSDI). If not, you may still be eligible if you certify that you are blind or disabled and have a written diagnosis of your condition by a licensed physician. Under all circumstances, the onset of the disability must have begun prior to age 26.

The Attainable Savings Plan doesn’t require you to submit documentation about your disability, but the IRS or Social Security Administration reserves the right to request this documentation; therefore, you must retain proof in your personal records. You will be required to certify and attest on the Attainable account application that you meet and comply with the eligibility requirements as set forth under IRC Section 529A, including the annual recertification requirements.

Earnings in the account grow tax deferred and, when used for qualified disability expenses, are federal income tax-free. The tax benefits may be significant. When you contribute money to an ABLE account, the money is invested in investment portfolios and may grow over time. No federal income tax will be owed on withdrawals, including any earnings, if the money is used for qualified disability expenses.

Helps preserve disability benefits: Money in the account does not impact Medicaid benefits and balances below $100,000 do not impact SSI benefits.

Annual contributions may not exceed the federal gift tax exclusion amount, which is $19,000 for 2025. If, however, a Designated Beneficiary is employed and has employment income, they may contribute an additional amount to their Attainable account up to the lesser of:

(1) the Designated Beneficiary’s compensation for the taxable year, or

(2) an amount equal to the federal poverty level for a 1-person household, which is currently $15,060 for 2025, but may change in the future. An existing account balance can grow without limit, but you cannot make additional contributions once the account balance reaches the Plan’s maximum contribution limit.

There are multiple providers that offer these types of accounts. Here are a few options and links to additional information:

Special Needs Trusts

A special needs trust (SNT) is a legal arrangement, typically set up by a parent or guardian. An SNT ensures that assets, often money or a life insurance policy, are held in an account and used to support the child.

The funds belong to the trust, not the child, so they won’t be factored into the child’s government benefits eligibility. An SNT is intended to supplement the child’s government benefits.

A special needs trust plays an important role in a child’s long-term well-being and offers several benefits:

  • Assets within the trust are not considered when determining eligibility for government programs, like Supplemental Security Income (SSI) and Medicaid.
  • Parents choose the administrator or “trustee” of the trust. Common options include existing family members and professional trustees.
  • Trustees have fiduciary responsibility to act in the best interest of the beneficiary.
  • The assets in a special needs trust can be used for a variety of expenses not covered by government benefits, including out-of-pocket medical or dental costs, personal caregivers, rehabilitation services, education, vacations, vehicle or home repairs and recurring bills.

The benefits of a special needs trust can end in several situations, including:

  • The trust runs out of funds.
  • The beneficiary no longer qualifies as someone with a disability or special needs.
  • The beneficiary passes away.

Special needs trusts are designed to supplement government benefits, not replace them. SNT funds can be spent any way the trust approves, as long as they aren’t spent on things the beneficiary is already receiving assistance with. Here are some common examples of ways SNT funds are used:

  • Medical and dental expenses not covered by insurance
  • Rehabilitation and therapy services
  • Educational expenses, such as tutoring or special needs schools
  • Transportation and vehicle expenses
  • Home modifications or accessibility modifications
  • Entertainment and travel expenses
  • Professional care services, such as housekeeping, personal care or companionship

529 Tuition Savings Plans

A 529 is a great way for parents to save for their children’s education. Investing in in these plans offers special tax benefits.

  • First, earnings in a 529 grow free from federal taxes and are not taxed when you take the money out to pay for college. The longer you leave the money invested, the more time it has to grow and the greater the tax benefits. So, it’s wise to set up a 529 as early as possible.
  • Second, many states are on-board with offering tax benefits to 529 savers. More than half allow a full or partial deduction for the contributions you make. It’s important to know that plan benefits vary by state. Some savers may only be eligible for benefits if they invest in a plan sponsored by their state of residence, but you may not need to pick your own state’s plan. Many plans are open to residents of any state.

Click here for a comparison of state plans.

There are two types of 529 Plans: The most common is an education savings plan. The less common option is the prepaid tuition plan. With both types of plans, funding and withdrawal rules may change over time, so it’s wise to stay informed. It’s also smart to keep up with tax regulations, because they’re known to change, too.

  • An education savings plan lets you invest after-tax money in mutual funds. The value of the savings account will go up or down, based on the performance of the investments. The account also will have fees for things like account maintenance and the investment managers’ time and expertise.
  • Less common are the prepaid tuition 529s. These plans, offered by some states, let you “lock in” college costs at today’s prices for future use at in-state schools. Most states require residency to take advantage of these. Unlike the education savings plan, these don’t have investment options. And you’ll pay into them with a lump sum or installments.

Everyone! Anyone can open and fund a plan – parents, grandparents, other relatives, or friends. You can even open one for yourself!

Withdrawals must be for qualified expenses and tuition.

  • Taking money out of a 529 is fairly cut and dry: Withdrawals must be used for qualified higher-education expenses – like, tuition, fees, and room and board expenses. We usually think of college when we think of 529 plans. But did you know you can use them for elementary and high-school-related expenses, too? Yes! you can use them to help pay private-school tuition and other fees.
  • Also, here are some things that AREN’T covered expenses: Transportation and travel; student loan repayments; mobile phone plans; and the student’s health insurance.

It IS your money, and you have several options with an education savings plan. Because there’s no time limit on when you have to spend the balance, you can keep the money for any future education-related uses for yourself, or a friend or family member.

  • You can transfer the plan to another qualifying family member, like a sibling, to pay for his or her education.
  • Or, you can use it to fund your own college courses.

As a last resort, you can take a nonqualified withdrawal. Because you made the contributions with after-tax money, they won’t be taxed or penalized. But any earnings on investments will be subject to income tax, as well as a 10% penalty from the IRS.

If you save too much money in a pre-paid tuition plan, you have different options. Typically, prepaid tuition plans offer some flexibility. This can include allowing you to use the money to pay tuition at other colleges – though the amount may be prorated. Most prepaid plans let you transfer the plan to another sibling, too. If you’re unable to use the plan for a child or sibling – or you need to cancel it – you can expect administrative fees, penalties and a reduction or elimination of any interest earned.

The answer, not surprisingly, depends on your situation. While saving a 100% of a child’s future education costs sounds like the right answer, that’s not a realistic target for most parents. Besides, you’re facing several unknowns – like the exact cost of a given college; additional savings or scholarships a parent might tap into; and other debt that could restrict college savings.

Below are some resources to help you calculate what amount might be right for you!

529 Plans are typically not detrimental to financial aid. Many students depend on financial aid to help meet college expenses. Experts say that, in most cases, the plan will have a minimal effect on the amount of aid received and will end up helping more than hurting. For example, the student may not need as many student loans.

Want to understand your benefits?

Review the Resources page to learn more.

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