People with disabilities or their families now will be permitted to create a tax-free savings account to pay for housing, transportation and other services to help them lead independent lives, under a program announced Monday by Human Services Commissioner Carole Johnson.

Medicaid and long-term social security disability programs do not allow recipients to hold more than $2,000 in assets. The savings plan available in New Jersey known as Achieving a Better Life Experience, or ABLE, protects people from losing their benefits by allowing them to save money for expenses not covered by their monthly stipend, Johnson said.

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

"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."

People qualify if they acquired their disability before age 26 and you qualify for Medicaid or Social Security benefits, or have been diagnosed with blindness, according to Johnson's statement.

"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.

Qualified expenses include education, health and wellness, housing, transportation, legal fees, financial management, job training and support, assistive technology and personal support services, according to the announcement. 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."

The savings program was created under federal law in 2014. New Jersey passed its own law so its residents could participate.

For more details, visit savewithable.com

Susan K. Livio may be reached at slivio@njadvancemedia.com. Follow her on Twitter @SusanKLivio. Find NJ.com Politics on Facebook.