FAQs
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- Benefits
- Contributions
- Eligibility
- General
- Gifting
- How it Works
- Linking Bank Accounts
- Opening an Account
- Prepaid Card
- Qualified Expenses
- Successors and Estates
- Tax Benefits
- How does the account work?
- Everything can be managed online. The money can be saved in a cash option and/or invested in one of the three investment options offered: ABLE Conservative, ABLE Moderate and ABLE Aggressive. These choices are made during the account setup. By law, you can only make investment changes on your... Read more
- Will having an account make me ineligible for Medicaid?
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No. Having an ABLE account doesn’t count towards your eligibility for Medicaid regardless of the amount saved in the account.
- What happens if I withdraw money for a non-eligible expense?
- You’ll have to pay taxes on any non-eligible expense, plus a 10% penalty on the earnings portion of the withdrawal. A withdrawal used for non-eligible expenses, or for housing expenses even if they are qualified disability expenses, could affect your eligibility for Supplemental Security Income... Read more
- How do I prove an eligible expense?
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Keep your receipts and documentation for all eligible expenses in case the IRS wants to see them. We don't need proof of your expenses, but you should have it for your records.
- Can I use funds to pay for housing or rent?
- Yes, you can use money from an ABLE account for housing expenses. If you’re eligible for Supplemental Security Income (SSI), the money must be used within the month it was withdrawn so it doesn’t affect your SSI eligibility. Plus, having an ABLE account doesn’t affect other housing benefits, like... Read more
- What qualifies as an eligible expense?
- There's a wide range of eligible expenses that cover most costs associated with living with a disability. Some of these include: living expenses, education, housing, transportation, employment, vacation, job training, career support, assistive technology, personal support services, health,... Read more
- How can I use the money in my ABLE account?
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You can withdraw money from the account and use it for eligible expenses which cover most costs associated with living with a disability. See the approved categories for more details about eligible expenses.
- Does having an account affect my other benefits?
- No. You can keep your federal and state benefits (SSI, SSDI, Medicaid, SNAP, TANF, HUD Assistance, Section 8, etc.) with an ABLE account. If you receive SSI, there is a $100,000 limit before funds start counting against your $2,000 asset limit. As long as the money withdrawn is used for eligible... Read more
- 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... Read more
- What are the fees?
- There are some fees to keep the account up and running. The annual flat fee is $35, plus an annual administrative fee of 0.30% to 0.34% of the account's balance and fees for the investment option. Additional fees are added based on how you use the account: $10 per year for paper statements when... Read more
