Opening an account
You can set up an ABLE account in as little as 10 minutes. We’ll ask for some information about the beneficiary, the qualifying disability, and how the ABLE account will be funded. To complete the setup, you’ll customize your account and make decisions about the money added.
You can save money in a cash option and/or invest money. If you decide to invest, you’ll need to put at least 10% of your funds in the investment option. The choice is up to you. There’s a $25 minimum deposit to start off your account and a $10 minimum for any contribution or withdrawal after that.
Why a cash option?
If you’re a “saver” rather than an “investor,” this is a conservative alternative for saving. It could be a good option if you plan on spending money from your account in the near future. This option protects your balance by putting all of the assets into an FDIC-insured account; there’s a low level of risk and lower level of returns.
Picking an investment option
There are three types of financial portfolios to pick from: ABLE Conservative, ABLE Moderate or ABLE Aggressive. Each investment option has its own benefits and limitations. It’s up to you to decide which one is right for you.
ABLE Conservative seeks to provide current income and some growth by investing in a portfolio of mutual funds that consists of 20% global public stocks and 80% bonds. Overall, there’s a small amount of risk and limited appreciation potential, designed for a shorter investment period.
ABLE Moderate seeks to provide a combination of growth and current income by investing in a portfolio of mutual funds that consists of 50% global public stocks and 50% bonds. Overall, there’s a medium level of risk for a pursuit of investment return, designed for a medium or uncertain time horizon.
ABLE Aggressive provides the potential to grow by investing in a portfolio of mutual funds that consists of 84% global public stocks and 16% bonds. Overall, there’s a higher level of risk and potential for return (or loss), designed for a longer investment period (10 years or more).
With the online platform powered by Sumday, the whole process is simple and intuitive. Your bank account is securely connected to the ABLE account to protect your information. You can add money whenever you want, even as little as $10 at a time, or every month with automatic transfers, to help you reach the $14,000 yearly maximum. Friends and family can also add to an account by making gift contributions.
Using your account
If you need to withdraw money for eligible expenses, simply make a withdrawal of at least $10 from your ABLE account to your bank account or load your prepaid card. If you have less than $10 in your account, you can liquidate it (which doesn’t close your account). When you use the prepaid card, purchases are tracked automatically to help you keep a record of your expenses.
There’s a low annual fee of $35 for each ABLE for ALL Savings Plan to keep everything running smoothly. There are also low fees on the underlying mutual funds, which are a part of each of the investment options, and a state administrative fee. These add up to between 0.30% and 0.38% of the account’s balance per year. Additional fees are added when you opt out of electronic statements or request a withdrawal check, instead of doing everything online. You can check them out in our Fees FAQ.