529 PLANS

ABLE TN

Tennessee

ABLE TN is administered by the Tennessee Department of Treasury and is a savings program designed to help individuals with disabilities put aside money to pay for qualified expenses. These accounts provide the opportunity to save and invest, with tax-free earnings, to help participants maintain independence and quality of life.

General

Program type:

ABLE Savings Plan

How to enroll:

Enroll directly with the program

Initial year of operation:

2016

State agency(ies):

Tennessee Treasury Department

Program manager:

Tennessee Treasury Department

Investment Manager

The Tennessee Treasury Department with offerings from Vanguard, PRIMECAP, Dimensional Fund Advisors and First Tennessee Bank

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

An individual who has been diagnosed with a disability on or before age 26 may qualify by meeting one of the following: 1. Is eligible to receive Supplemental Security Income (SSI) 2. Is eligible to receive Social Security Disability Insurance (SSDI) 3. Has been diagnosed by a qualifying physician as having a physical or mental disability resulting in marked and severe functional limitations that is expected to last no less than 12 months.

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 total annual contribution limit is $14,000 for all contributions, excluding Program-to-Program transfers into the plan. The total account contribution limit is $350,000.

Minimum contributions:

There is minimum $25 initial contribution per investment option required to open account.

Investment Options

Target-Risk Options:

The program offers offers 14 self-selected investment options.

Bank Money Market Investment / Checking Option:

The interest bearing account investment option is FDIC-insured.

Fees & Expenses

Enrollment or application fee:

None

Account maintenance fee:

None

Program management fees:

Program management fee ranges from 0.00% to 0.31%.

Expenses of the underlying investments:

Ranges from 0.00% to 0.62%

Total asset-based expense ratio:

0.00% - 0.62%.

Fees or restrictions on the number of disbursements

None

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:

All contributions and withdrawals are exempt from state, county and municipal taxes.

State tax treatment of rollovers:

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

Medicaid eligibility

Amounts contributed to or held in, and qualified withdrawals from, an ABLE TN account are disregarded for purposes of Medicaid benefits eligibility. The Centers for Medicare and Medicaid have not yet provided guidance regarding the impact of non-qualified withdrawals on Medicaid eligibility.

Medicaid recapture provisions

Upon the death of the designated beneficiary, after all outstanding payments for qualified disability expenses are made, the applicable state's Medicaid program may claim up to an amount equal to the total medical assistance paid for the designated beneficiary after the establishment of the ABLE TN account.

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

No

Statutory protection of an account from creditors:

PRO Premium subscription required for this data.

Distributions & Terminations

To whom are distributions made payable:

A withdrawal may be made payable to a designated beneficiary or the designated beneficiary's legal representative.

Account Changes

Policy regarding participant/owner changes:

A designated beneficiary or legal representative may change the beneficiary on an account at any time, as long as the new beneficiary is an eligible individual and a member or the family of the former beneficiary. Any changes require that ownership of the account also be transferred to the new designated beneficiary.

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:

PRO Premium subscription required for this data.

Contact

Website:

Click here to visit

Telephone:

855-922-5386

Email:

ABLE.TN@tn.gov

Twitter

ABLETennessee

Facebook

ABLETN

 

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