529 PLANS

ABLEforAll

Oregon

The ABLEforAll plan is established pursuant to the ABLE Act and sections 178.300 to 178.380 of the Oregon Revised Statutes, as amended (the "Oregon Act"). The plan is designed to be a "qualified ABLE program", which status permits a beneficiary of an ABLE Account established under the plan to make tax-free withdrawals to pay for qualified disability expenses under certain circumstances.

General

Program type:

ABLE Savings plan

How to enroll:

Enroll directly with the program

Initial year of operation:

2016

State agency(ies):

The Oregon 529 Savings Board

Program manager:

Sumday

Manager contract term:

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Investment Manager

Sellwood Consulting

Eligibility

State residency requirements:

No

Who can be a participant/owner in the program?

An account may be opened by a qualified beneficiary under Section 529A or, if one is designated, his/her Authorized Representative on his/her behalf.

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 year per ABLE account from all sources. Additional contributions to an ABLE account are not permitted if, taking into account the proposed contribution, the ABLE account's balance is or would be greater than or equal to the lifetime account limit, currently $310,000.

Minimum contributions:

The minimum initial contribution amount is $25 per ABLE account. The minimum subsequent contribution amount is $10 per ABLE account.

Investment Options

Target-Risk Options:

Select among 3 portfolio options: ABLE Conservative Investment Option, ABLE Moderate Investment Option, and ABLE Aggressive Investment Option, as well as a Cash Option.

Bank Money Market Investment Option:

The Cash Option offers FDIC insurance protection for amounts contributed to the Cash Option.

Fees & Expenses

Enrollment or application fee:

None

Account maintenance fee:

$55/annually

Program management fees:

State Administrative Fees of 0.30%

Expenses of the underlying investments:

Ranges from 0.0647% to 0.0810%, depending on the selected investment option

Total asset-based expense ratio:

0.30% - 0.3810%, depending on the selected investment option

Fees or restrictions on the number of disbursements

There is a $2.50 fee on each paper check disbursement, as well as a $15 fee on outgoing wires, as well as for the re-issue of disbursement checks.

Taxes and other Benefits

Program match on contributions:

None

State tax deduction or credit for contributions:

Contributions to an ABLE account with a beneficiary under the age of 21 are deductible for Oregon income tax purposes up to annual limits. For 2016, the deduction is $4,660 for taxpayers filing jointly and $2,330 for single filers.

State tax recapture provisions:

None

State tax treatment of qualified distributions:

If a qualified withdrawal is made from an ABLE account, no portion of the distribution may be included in the gross income of the beneficiary for purposes of federal and Oregon state income taxes.

State tax treatment of rollovers:

No portion of a rollover or a program-to-program transfer may be included in the gross income of the beneficiary for purposes of federal and Oregon state income taxes, or is subject to the additional 10% federal tax imposed on the earnings portion of certain non-qualified withdrawals.

Medicaid eligibility

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

Medicaid recapture provisions

Under Section 529A of the Code, following the death of the beneficiary, any state may file a claim against the ABLE account for the amount of the total medical assistance paid for the beneficiary under the state's Medicaid plan after the establishment of the ABLE account (or any ABLE account from which amounts were rolled or transferred to the current ABLE account). The amount paid in satisfaction of such a claim is not a taxable distribution from the ABLE account. Further, the amount is to be paid only after the payment of all outstanding payments due for the qualified disability expenses of the beneficiary, which includes funeral and burial expenses, and is to be reduced by the amount of all premiums paid by or on behalf of the beneficiary 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?

There will soon be a pre-paid card for beneficiaries to use funds, and it will be offered for an annual fee of $15

Statutory protection of an account from creditors:

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Distributions & Terminations

To whom are distributions made payable:

Only the beneficiary, or, if one has been named, the authorized legal representative, may direct withdrawals from an ABLE account.

Account Changes

Policy regarding participant/owner changes:

A change in the beneficiary of an ABLE account is not treated as a distribution and is not subject to federal gift or GST taxes if the new beneficiary is an eligible individual and a sibling of the current beneficiary. However, if the new beneficiary is not a sibling of the current beneficiary, the change is treated as a non-qualified withdrawal by the current beneficiary and may have federal gift tax or GST tax consequences.

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:

1-844-394-ABLE

Twitter

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