529 PLANS

Enable Savings Plan Alabama

Enable Alabama is issued by The Nebraska Achieving a Better Life Experience Program Trust and administered by the Nebraska State Treasurer, who serves as trustee to the plan. The plan offers a series of investment options within the Nebraska Achieving a Better Life Experience Program Trust.

General

Program type:

ABLE Savings plan

How to enroll:

Enroll directly with the program

Initial year of operation:

2017

State agency(ies):

Alabama State Treasurer

Program manager:

First National Bank of Omaha

Program distributor:

First National Capital Markets

Manager contract term:

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Investment Manager

Nebraska Investment Council

Eligibility

State residency requirements:

No

Who can be a participant/owner in the program?

An account may be opened by an eligible individual under section 529A or an authorized individual with valid power of attorney or the eligible individual's legal guardian or conservator.

Program restrictions:

To be eligible for an ABLE savings plan, an individual must have been diagnosed with a disability before age 26, and be eligible to receive benefits under Supplemental Security Income (SSI) and/or Social Security Disability Insurance (SSDI). Individuals who are not receiving SSI and/or SSDI may still be eligible if they meet the age requirement and have been diagnosed by a licensed physician and received a letter of certification.

Contributions

Maximum contributions:

Annual contribution limit is currently $14,000 from all sources. Account balance limit of up to $360,000 per account owner. Assets can grow beyond $360,000.

Minimum contributions:

The minimum initial contribution amount is $50 per account, waived with automatic investment plan or payroll deduction. The minimum subsequent contribution amount is $25, is waived if for automatic investment plan or payroll deduction.

Investment Options

Target-Risk Options:

Select among 3 investment options: Growth, Moderate, and Conservative.

Bank Money Market Investment Option:

An omnibus savings account insured by the FDIC and is held at First National Bank of Omaha.

Fees & Expenses

Enrollment or application fee:

None

Account maintenance fee:

$45 annually, assessed at $11.25 per quarter.

Program management fees:

None

Expenses of the underlying investments:

Ranges from 0.05% to 0.06%, depending on the selected investment option. The checking option has no asset-based fees.

Total asset-based expense ratio:

0.50% - 0.56%, depending on investment options chosen.

Fees or restrictions on the number of disbursements

Contributions may not be withdrawn from an account for five business days after deposit.

Taxes and other Benefits

Program match on contributions:

None

State tax deduction or credit for contributions:

None

State tax recapture provisions:

None

State tax treatment of qualified distributions:

There are no Alabama state income taxes due on investment earnings in an account in Enable Alabama when used to pay for qualified disability expenses.

State tax treatment of rollovers:

The account owner will not be required to include any amount in computing Alabama taxable income as a result of a transfer of amounts from an account owner to the account of a different qualifying account owner, provided that in each case the new account owner is an eligible individual and a member of the family of the replaced account owner and the transfers occur either directly or by deposit to the new account in Enable Alabama (or other ABLE Program sponsored or participated in by the State of Alabama) within 60 days of the withdrawal from the prior account.

Medicaid eligibility

The ABLE Act is designed to ensure that the value of any and all assets purchased using funds from an ABLE account that are qualified disability expenses will not count for purposes of determining eligibility for Medicaid, and that once an asset is purchased it will not be subject to further review. However, the Centers for Medicare & Medicaid Services (CMS) have not yet provided interpretative guidance similar to SSA's regarding the potential impact of ABLE programs on Medicaid benefits.

Medicaid recapture provisions

Upon the death of the account owner, Code Section 529A permits a state to file a claim for the amount of the total medical assistance paid for the account owner under the state's Medicaid plan after the establishment of the account (or any ABLE account from which amounts were rolled or transferred to the account). The amount of the claim is to be paid only after the payment of all outstanding payments due for the qualified disability expenses of the account owner and is to be reduced by the amount of all premiums paid by or on behalf of the account owner to a Medicaid Buy-In program under that state's Medicaid plan. Procedures for filing claims may vary from state to state.

Is there a debit card/ purchasing card available, and if so, at what cost?

Yes, a Debit card is available.

Statutory protection of an account from creditors:

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Distributions & Terminations

To whom are distributions made payable:

A qualified withdrawal will be distributed to the account owner. If there is an authorized individual on the account, a qualified withdrawal will be payable to the account owner. Distributions will be sent to the address on the account or a third party designated by the account owner.

Account Changes

Policy regarding participant/owner changes:

You may direct a rollover from a plan account to an account in another qualified ABLE program for the same or another account owner who is a member of the family. Alternatively, you may make a withdrawal from your account and re-deposit the withdrawn balance within 60 days into an account in another qualified ABLE program for the same or another account owner.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

Yes, unless there is an authorized individual on the account.

Documents and other services accessible or downloadable on the program's public Web site:

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Contact

Website:

Click here to visit

Telephone:

1-866-833-7949

Email:

al.clientservices@enablesavings.com

State News

 

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