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What happens if the beneficiary is no longer eligible for an account?

If a beneficiary no longer meets eligibility requirements, they no longer qualify for an ABLE account and they (or their account manager) should sign into their account’s settings and update their eligibility. Their account will remain open and they can continue to use the account until the end of the year. After the end of the year, they stop being eligible, no new contributions (including automatic transfers) will be allowed, and account withdrawals will be treated as non-qualified withdrawals. The savings portion of non-qualified withdrawals is subject to income taxation and a 10% federal penalty, and non-qualified withdrawals may affect eligibility for Supplemental Security Income (SSI) and other federal benefits. The account will close if all the money is withdrawn. If the ...
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How do I know if I’m an Authorized Legal Representative (ALR)?

An Authorized Legal Representative (ALR) is someone who is legally authorized under state and federal law to make decisions for the beneficiary. You’re an ALR if you are selected by the eligible beneficiary with legal capacity, you have Power of Attorney, are a conservator or legal guardian, are a spouse, parent, sibling, or grandparent, or are a representative payee (individual or organization), in that order of priority. If you don’t currently have Power of Attorney for a beneficiary, you can find more information here.
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Can I still work and have an account?

Yes. With the ABLE to Work Act you can even contribute up to an extra $14,580 (as of 2024) to your ABLE account if you are working, in addition to the yearly contribution limit of $18,000. Keep in mind that ABLE accounts help protect assets from counting against benefit asset limits. They do not protect against the income limits that might be tied to a state or federal benefit. Here are some rules and guidelines you should know about. 
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Who owns the account?

If the account is for yourself, the money and funds are yours. If an Authorized Legal Representative, such as a parent or guardian, opened and managed the account for a beneficiary, the money still belongs to the beneficiary. 
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What type of disabilities qualify for an account?

Any disability that qualifies for Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) or blindness that developed before the age of 26 is eligible for an ABLE account. Some of the conditions recognized by the Social Security Administration that could qualify based on the level of severity include: blindness, Down Syndrome, hearing loss (deafness), epilepsy, autism/Asperger and more. Those who don’t receive Social Security benefits are still eligible if they can get a signed Diagnosis Form from a licensed physician. 
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Am I eligible for an ABLE account?

If you developed a disability or blindness before the age of 26 and are eligible for Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) benefits, or have a signed Diagnosis Form from a licensed physician, you can open an ABLE account.
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Who can have an account?

Anyone with an eligible disability or blindness (as defined by the Social Security Act) who was diagnosed before the age of 26 can have an ABLE account. If you’re over 18 years old, you can open your own account; if not, an Authorized Legal Representative can do it. Either way, you can have only one ABLE account at a time.
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