When is IRS form 5498-QA available?

The plan administrator must send the 5498-QA by March 15, so you should receive the form no later than late March following the close of the tax year. You will receive it via mail or electronic delivery based on communications preferences.
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What is IRS Form 5498-QA?

If you make a contribution to your account, you will receive IRS Form 5498-QA, which is a tax form that details all of the contributions you made throughout the tax year to your account. This form reports ABLE account contributions, rollovers and direct program-to-program transfers in the prior year. To ensure that you properly handle matters on your federal income tax return, please consult a tax advisor and learn more about Form 5498-QA from the IRS directly.
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When is IRS form 1099-QA available?

The plan administrator must send the 1099-QA by January 31, so you should receive the form no later than early February following the close of the tax year. You will receive it via mail or electronic delivery based on communications preferences.
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What is IRS Form 1099-QA?

If you make a withdrawal from your account, you will receive the IRS Form 1099-QA, which is a tax form that details all of the withdrawals you made throughout the tax year from your account. This statement reports withdrawals from the ABLE account in the prior calendar year. You only receive a 1099-QA form if you withdrew funds from or closed your ABLE account during the tax year.To ensure that you properly handle matters on your federal income tax return, please consult a tax advisor and learn more about Form 1099-QA from the IRS directly.
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What kind of benefits do I get?

One of the main benefits of having an ABLE account is being able to save for eligible expenses and invest for the future in a tax-advantaged account. The account’s growth is tax free and you may qualify for a state income tax deduction, depending on where you live. As long as your balance stays below the $100,000 Supplemental Security Income (SSI) limit, you can keep your SSI benefits and still qualify for Medicaid and other federal benefits (regardless of the amount saved in your account). You'll also get access to a simple and intuitive online platform to manage your account.
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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 fewer 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 $18,000 in 2024 and a lifetime maximum of $400,000.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 Third-Party Special Needs Trust are generally ...
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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 Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), Medicaid, and others for their living and basic needs, but even those benefits can be limiting. Those receiving much needed benefits, like SSI, 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 benefits.  
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