529 PLANS

ABLE Nevada

ABLE Nevada is established and administered by the Office of the Nevada State Treasurer in cooperation with the Aging and Disability Services Division of the Department of Health and Human Services. The Enabling Legislation authorizes the creation of ABLE Nevada within the Aging and Disability Services Division of the Department of Health and Human Services to provide independent living services and assistive technology for persons with disabilities who need independent living services.

General

Program type:

ABLE Savings plan

How to enroll:

Enroll directly with the program

Initial year of operation:

2017

State agency(ies):

Office of the Nevada State Treasurer and the Nevada Department of Health and Human Services

Program manager:

Ascensus

Manager contract term:

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Investment Manager

Underlying mutual funds and ETFs managed by BlackRock, Schwab, and Vanguard. Sallie Mae Bank provides the high yield savings account.

Eligibility

State residency requirements:

No

Who can be a participant/owner in the program?

An account owner must be an eligible individual under Section 529A as well as a U.S. Citizen or resident alien with a SSI/TIN number and valid permanent U.S. street address.

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 member plan's annual contribution lgimit is currently $14,000 per account owner from all sources. No additional contributions may be made for the benefit of an account owner when the fair market value of the account exceeds the account balance limit of $370,000. Accounts that have reached the account balance limit may continue to accrue earnings, although future contributions may not be made to such Accounts. If however, the market value of such account falls below the account balance limit due to market fluctuations and not as a result of withdrawals from such account(s), additional contributions will be accepted.

Minimum contributions:

The initial and additional contribution minimum is $25.

Investment Options

Target-Risk Options:

Select among 6 portfolio options: Aggressive Option, Moderately Aggressive Option, Growth Option, Moderate Option, Moderately Conservative Option, or Conservative Option.

Bank Money Market Investment Option:

The banking option offers FDIC insurance protection for amounts invested in the option, up to FDIC-permitted limits. The banking option is Fifth Third Bank including a checking account and a debit card.

Fees & Expenses

Enrollment or application fee:

None

Account maintenance fee:

$15 quarterly, reduced by $3.75 if owner elects to receive electronic statements and confirmations, reduced further by $1.25 if the owner is a Nevada resident

Program management fees:

0.32% for all investment options

Expenses of the underlying investments:

Ranges from 0.02% to 0.06%, depending on the selected investment option

Total asset-based expense ratio:

0.34% - 0.38%, depending on the selected investment option

Fees or restrictions on the number of disbursements

None, but a $25 fee applies to all outgoing wires and priority delivery service

Taxes and other Benefits

Program match on contributions:

None

State tax deduction or credit for contributions:

Not applicable. Nevada does not have a personal income tax.

State tax recapture provisions:

Not applicable. Nevada does not have a personal income tax.

State tax treatment of qualified distributions:

Not applicable. Nevada does not have a personal income tax

State tax treatment of rollovers:

Not applicable. Nevada does not have a personal income tax.

Medicaid eligibility

The Centers for Medicare & Medicaid Services have not yet provided detailed guidance on how funds in qualified ABLE accounts will be treated for purposes of determining Medicaid eligibility.

Medicaid recapture provisions

Under Section 529A, following the death of the account owner, any state may file a claim against the account Owner or the account itself 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 current account). The amount paid in satisfaction of such a claim is not a taxable withdrawal from the account. Further, the amount 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, there are debit card and checking account features available.

Statutory protection of an account from creditors:

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Distributions & Terminations

To whom are distributions made payable:

Withdrawals will be sent by check or ACH to the account owner at the address on the account or a third party designated by the account owner.

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership provided the appropriate form and any additional requested documentation is submitted to the plan.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

Yes

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:

888-609-8916

Email:

nv.clientservice@savewithable.com

State News

 

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