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
- 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
- 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you contribute to your ABLE for ALL account is made with after-tax dollars, and any of your account earnings can be withdrawn and used to pay for qualified expenses tax-free.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
- Can I connect more than one bank account or type of account?
- Yes, you can connect more than one bank account and multiple types of bank accounts. While both checking and savings account types can be linked to your ABLE for ALL account at the same time, please note, the set-up process requires individually connecting each account. The Authorized Legal... Read more
