FAQs
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- About ABLE
- Account Management
- Additional Tax Benefits and Penalties
- ALR
- Banking and Investments
- Contributions and Withdrawals
- Eligibility
- Getting Started with ABLE
- Gifting
- Prepaid Card
- Recurring Contributions
- Rollover
- Successors and Estates
- Tax Credit
- What can I purchase with ABLE Prepaid Card funds?
- You can use your ABLE Visa® Prepaid Card anywhere Visa is accepted, including for online bill-pay. Your card can be used for anything; however, if you use the card to pay for something that is not a qualified expense, there may be penalties on the earnings. Also, keep in mind that in addition to... Read more
- What information is needed to sign up for an ABLE for ALL account?
- To open an ABLE for ALL Savings Plan account, you'll need to provide some basic information as the account holder, including: Full name Contact information Date of birth Social Security number or tax ID To finish setting up your account, you will be asked to: Connect a bank account Choose... Read more
- What is a non-qualified withdrawal?
- A non-qualified withdrawal is any withdrawal that is not considered a qualified expense, a taxable withdrawal, or a rollover. Apart from these exceptions, the earnings portion (not the amount you contributed) of a non-qualified withdrawal typically is subject to federal income tax and an additional... Read more
- Are there tax penalties on withdrawals for non-qualified expenses?
- Yes. If you make a withdrawal from your account for a non-qualified expense, the earnings tied to that distribution will be considered taxable income. A withdrawal used for a non-qualified expense could affect your eligibility for benefits such as Supplemental Security Income (SSI) or... Read more
- Is there a benefit to filing a tax return, even if I have low, or no, income?
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Yes. Credits may earn you a tax refund! If you qualify for credits, but owe no tax, you can claim the excess tax credit as a refund when you file your return.
- Could saving for retirement impact my benefits?
- The short answer is, yes. Workers may choose to invest in both an ABLE savings account and a separate retirement savings account; however, retirement accounts were not designed with the same protections in mind as ABLE accounts. The money saved in an ABLE account does not count against asset limits... Read more
- Are contributions made pre-tax or after-tax?
- The money that you contribute to your ABLE for ALL account is made with after-tax dollars, and any of your account earnings can be withdrawn and used to pay for qualified expenses tax-free. Any money added to the account could qualify for a state income tax credit, which means you’ll have even more... Read more
- Are there tax credits I may qualify for?
- Yes. The IRS offers several tax credits that can provide meaningful savings for families, reducing the amount filers owe on their taxes, and in some cases, leading to an increased tax refund. Many qualified taxpayers overlook the Earned Income Tax Credit (EITC), a federal refundable credit for... Read more
- Are investments in my ABLE for ALL account guaranteed not to lose money or are they insured?
- No. As with any investment, there is some risk involved. While ABLE for ALL Savings Plan accounts provide investment options to match a variety of risk tolerances, there is no guarantee that your portfolio will generate earnings. Before opening an account, you should carefully read and understand... Read more
- How can I challenge a transaction on my ABLE Prepaid Card?
- In case of errors or questions about your card account, please contact True Link as soon as possible at 1-888-219-9054. Alternatively, you can write True Link Financial, Inc., at PO Box 581, San Francisco, CA 94104. True Link must allow you to report the potential error for up to 120 days after the... Read more
