529 PLANS

Enable Savings Plan

The Enable Savings Plan 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. The Plan is intended to operate as a qualified ABLE program, pursuant to Internal Revenue Code Section529A.

General

Program type:

ABLE Savings plan

How to enroll:

Enroll directly with the program

Initial year of operation:

2017

State agency(ies):

Nebraska 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:

The plan's annual contribution limit is currently $14,000 per account owner from all sources. Moreover, no additional contributions may be made for the benefit of an account owner when the fair market value of the account exceeds $360,000. If, however, the market value of such accounts falls below the account balance limit, additional contributions will be accepted.

Minimum contributions:

The minimum initial contribution amount is $50 per account unless the account owner signs up for AIP or payroll deduction of at least $25 per month. The minimum subsequent contribution amount is $25, but is waived if the account owner is signed up for AIP or payroll deduction.

Investment Options

Target-Risk Options:

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

Bank Money Market Investment Option:

A 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

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 the investment option 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:

Contributions by anyone who files a Nebraska state income tax return are eligible to receive a Nebraska state income tax deduction for their own contributions of up to $10,000 ($5,000 if married, filing separately).

State tax recapture provisions:

Nebraska state law currently provides for the partial recapture of the Nebraska state income tax deduction when a non-qualified withdrawal is made. Additionally, to the extent that a distribution constitutes a non-qualified withdrawal, the Nebraska Department of Revenue will subject the distribution to partial recapture of the Nebraska state income tax deduction claimed in prior years. In general, a contributor who claimed a Nebraska state income tax deduction in prior years must increase his or her Nebraska taxable income by the amount of the non-qualified withdrawal, but only to the extent previously deducted.

State tax treatment of qualified distributions:

If a qualified withdrawal is made from an account, no portion of the distribution may be included in the gross income of the account owner.

State tax treatment of rollovers:

Nebraska follows federal tax-free treatment, though tax-free rollovers are restricted to once per 12-month period.

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.

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

Yes, a Debit MasterCard 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 and sent to the address on the account or a third party designated by the account owner.

Account Changes

Policy regarding participant/owner changes:

The Enable Savings Plan permits the transfer of all or a portion of an account owner's account balance to another account within the Enable Savings Plan, but only during the life of the account owner. At the time of the transfer, any transferee must be an eligible individual and a member of the family of the transferor-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:

1-844-ENABLE4

Email:

clientservices@enablesavings.com

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