What is ABLE to Work?

The ABLE to Work Act, effective January 1, 2018, revised the Internal Revenue Code applicable to ABLE accounts to permit eligible employed beneficiaries to save more in their ABLE accounts.Not only has the yearly contribution limit for ABLE accounts gone up to $15,000 for 2018, but now beneficiaries who are employed can contribute an amount equal to their current year gross income up to an additional $12,060 each year to their ABLE accounts thanks to the ABLE to Work Act.You can make an ABLE to Work contribution online or by using the Contribution Form.If the beneficiary or their employer is contributing to a defined contribution plan (401K), annuity plan (403(b)), or deferred compensation plan (457(b)) this calendar year, the beneficiary is not eligible to make ABLE to Work contributions.
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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 in to 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, but will no longer be able to sign up for a prepaid card accountAfter 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 earnings portion of non-qualified withdrawals is subject to income taxation and to a 10% federal tax penalty, and non-qualified withdrawals may affect eligibility for SSI and other federal benefits. The account will close if ...
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How do I change my address?

If you’re the beneficiary of an account, or an Authorized Legal Representative, you can update your address directly from your profile, accessible through the dashboard. As an ALR, you can manage a beneficiary’s address (where all statements and communications are sent if you select to receive them by snail mail), by editing the account information in the account details. When you update an ABLE account’s address, there’s a 30-day hold for all check withdrawals requested with the Withdrawal Form or by calling customer service. Withdrawals made online are not affected.
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What is Sumday?

Sumday is the plan manager for the ABLE for ALL Savings Plan and provides the online platform for the ABLE account.  Sumday is owned by BNY Mellon, one of the world’s largest financial institutions and its core mission is to improve lives through investing. For more information, check out the Plan Disclosure Booklet and Participation Agreement.
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Do I have to pay taxes on my account?

As long as the money in your ABLE account is used for eligible expenses, it won’t be counted as income for your state or federal taxes. If a purchase doesn’t qualify as an eligible expense, you’ll have to pay taxes and a 10% penalty on the amount. If you want to know more about the IRS regulations, you can find info here.  
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How is this different from a Special Needs Trust or Pooled Trust?

An ABLE account won’t replace a Special Needs Trust or Pooled Trust. There are some key differences that are meant to give people with disabilities and their families more options.With an ABLE account: There are less expenses than setting up a trust. The beneficiary owns the funds and can access them for eligible expenses. Earnings are tax-free advantaged. There’s a yearly limit of $15,000 and a lifetime maximum of $310,000. Funds can be used for housing without affecting benefits. With a Special Needs Trust or Pooled Trust: You have to set up a trust. The beneficiary has to get approval of the trustee to receive a disbursement. The earnings are taxed at trust rates. There are no limits on contributions or balances. Amounts in a ...
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What is the ABLE for ALL Savings Plan?

The ABLE for ALL Savings Plan is a plan available to U.S. citizens nationwide to help those living with eligible disabilities save for qualified expenses and invest for the future in a tax-advantaged account ‒ without losing federal and state benefits (like SSI, SSDI, Medicaid, SNAP, TANF, HUD Assistance, Section 8, etc.).
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What is the ABLE Act?

Millions of people with disabilities rely on public benefits and federal programs such as SSI, SSDI, Medicaid and others for their living and basic needs, but even those benefits can be limiting. Those receiving much needed benefits, like SSI (Supplemental Security Income), are restricted to having only $2,000 in assets, which means they are probably pinching pennies to get by. The Stephen Beck Jr. Achieving a Better Life Experience Act, known as the ABLE Act, was passed by Congress in 2014 to help people save for the costs of living with a disability and invest for the future in a tax-advantaged investment account without losing their benefits.    
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