The next time you make a contribution or a withdrawal, the money will be distributed to help you reach your original target allocation.Let’s say your target allocation is 70% invested and 30% in cash. If you contribute $100 to start off the account, $70 will be invested. Overtime, that investment could grow to be $80. Now, your total balance is $110 and your allocations are 72% invested and 28% in cash, because an investment can grow quicker than cash. In this instance, money will be added to the cash option first to help it go back to 30%, and the rest of the money will be allocated based on your target allocation The same thing happens when you withdraw money. The goal is to maintain your original target allocation.
You can sign up for the ABLE for ALL Prepaid Card once you have an ABLE for ALL Savings Plan account. There’s a low monthly fee of $1.25 and no credit check or transaction fees. It’s easy to load and use money from the ABLE account for eligible expenses. Also, you can manage your balance and activity online. For help managing your prepaid card account, check out these frequently asked questions.
In the event of the death of a beneficiary, the funds from their ABLE account can be used by his or her estate to repay any outstanding eligible expenses or funeral and burial costs. If the beneficiary was receiving Medicaid benefits, Medicaid can file a claim for a payback upon their death and any premiums paid as part of the Medicaid Buy-In Program can be deducted from the balance left. The Medicaid recovery is calculated from the date the beneficiary opened the ABLE account.
The money in the account generally isn’t considered an asset for state and federal benefit purposes. For SSI benefits only, you can have up to $100,000 in the account before the funds start to count against the $2,000 asset limit.
To keep the account safe, don’t share your password or let someone else have access to your account unless an Authorized Legal Representative is the manager. If you want to change the Authorized Legal Representative for the account, give us a call at 1-844-394-ABLE, 9-8 ET or 1-844-888-ABLE for TTY, 9-8 ET.
You can make withdrawals of at least $10 at any time online. A transfer can take between 2-7 business days to complete, depending on how the money is allocated. With a prepaid card, withdrawing money is even faster. Any funds added before 4 p.m. on a business day will be available that day, otherwise they will be ready on the next business day.If you request a check, a $2.50 fee will be deducted from the check amount. You’ll get the payment in 5-7 business days. If you request a full withdrawal, your account will still be open and active, but the balance will be $0 until you add money to it. To close the account for good, give us a call.
Once your bank is connected, you can make a contribution of at least $10 directly into your ABLE account at any time online. It’s easy and secure. You can also set up monthly transfers of at least $10 to add funds automatically each month.Checks are also welcome.Make your checks payable to: ABLE for ALL Savings Plan and mail them to: ABLE for ALL Savings PlanPO Box 9891Providence, R.I. 02940-8091
You can change the allocation of future contributions up to twice per year. Since you can only make investment changes on your account twice a calendar year, including allocation changes and investment option changes, if you change your allocation of future contributions, that counts towards your twice a year limit. Head over to your account and decide how much of your future contributions you want to save in the cash option and/or investment.
Money saved in a cash option could earn minimal interest. The numbers will fluctuate slightly based on the interest rate of the US capital markets. With an investment, you can choose which portfolio to invest in based on your needs, and there’s a change of your money growing over time. Withdrawals usually take 2-7 business days to complete depending on how the money is allocated.
A cash option is a conservative alternative to investing. If you plan on spending money from the account in the near future, this option is faster to withdraw. Your assets are protected in an FDIC-insured account. Keep in mind that with a low level of risk there’s also a lower level of returns. See the Plan Disclosure Booklet for more information on FDIC insurance.
Yes, you can change your investment option up to twice per year. Since you can only make investment changes on your account twice a calendar year, including allocation changes and investment option changes, if you change your investment option, that counts towards your twice a year limit. If you do make a change to your investment option, we’ll sell your units in the original option and use the proceeds to buy units in the new one. You can also use this form.
If you decide to invest all or some of the money, there are three investment options to pick from: ABLE Conservative, ABLE Moderate and ABLE Aggressive. Each one has its benefits and limitation. We can help educate you on the differences between the three, but we can’t tell you which one to pick. You can learn more about these options on the How it Works page and the Plan Disclosure Booklet.
You have to add at least $25 to get your account started. After that, you can add as little as $10 at any time. If you decide to invest, you have to add at least 10% of your contributions to the investment option you picked.
Friends, family, and employers can make contributions to your account to help you reach your goals for the account. Learn more about how to make a gift contribution or simply use the Gifting Form to get started.
There’s a $14,000 yearly limit and a lifetime maximum value of $310,000 for each ABLE account. When you reach the limit, you can still accrue earnings, but won’t be able to add money until the balance dips below $310,000. There’s also a limit of $100,000 before funds start to count against your $2,000 asset limit for SSI.Remember: all contribution and withdrawals must be at least $10.
Everything can be managed online. The money can be saved in a cash option and/or invested in one of the three investment options offered: ABLE Conservative, ABLE Moderate and ABLE Aggressive. These choices are made during the account setup. By law, you can only make investment changes on your account twice a calendar year, and this includes changes to the allocation between cash/investment or changes to the investment option. Contributions and withdrawals can be initiated whenever you want.
You’ll have to pay taxes on any non-eligible expense, plus a 10% penalty on the earnings portion of the withdrawal. A withdrawal used for a non-eligible expense could affect your eligibility for SSI benefits, Medicaid or other much needed benefits under federal or state programs, as could a withdrawal that is applied to a housing expense in any month after the month of the withdrawal.
Keep your receipts and documentation for all eligible expenses in case the IRS wants to see them. We don’t need proof of your expenses, but you should have it for your records. If you use the prepaid card for eligible expenses, you’ll be able to track your purchases through the system to help with your records, but the IRS will require you also have receipts.