529 PLANS

ABLEnow

Virginia

The ABLEnow Program allows eligible individuals to save for qualified disability expenses on a tax-advantaged basis without jeopardizing eligibility for federal means-tested benefits, such as Supplemental Security Income and Medicaid.

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General

Program type:

ABLE Savings plan

How to enroll:

Enroll directly with the program Enroll Now

Initial year of operation:

2016

State agency(ies):

Virginia College Savings Plan

Program manager:

Virginia College Savings Plan

Investment Manager

Underlying mutual funds managed by Vanguard and Fidelity; Deposit Account maintained by PNC Bank

Eligibility

State residency requirements:

No

Who can be a participant/owner in the program?

The account owner must be an eligible individual for whose benefit all contributions are made.

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 Annual Contribution Limit is currently $14,000 per account from all sources. The Program's Maximum Account Balance Limit is currently $500,000. No additional contributions may be made for the benefit of an Account Owner when the fair market value of his or her account is greater than or equal to $500,000. If, however, the market value of the Account falls below the Maximum Account Balance Limit, additional contributions may be made.

Minimum contributions:

There is no minimum initial contribution amount or minimum subsequent contribution amount, however the first $2,000 will be held in the deposit account and only additional funds may be allocated to other investment options.

Investment Options

Target-Risk Options:

Select among 4 portfolio options: Aggressive Growth, Moderate Growth, Conservative Income, and Money Market

Bank Money Market Investment / Checking Option:

Money Market investment option, as well as a PNC ABLEnow deposit account

Fees & Expenses

Enrollment or application fee:

None

Account maintenance fee:

$3.25/monthly

Program management fees:

0.10% and 0.15% on investment balances for the PNC and ABLEnow Administrative Fees, respectively

Expenses of the underlying investments:

Ranges from 0.12% to 0.15%, depending on the selected investment option

Total asset-based expense ratio:

0.37% - 0.40%, depending on the selected investment option

Fees or restrictions on the number of disbursements

Although there is no limit on the number of transactions (contributions/withdrawals) that can be requested and processed by the account custodian on behalf or an owner, the account dustodian reserves the right to limit the frequency and minimum dollar amount of withdrawals.

Taxes and other Benefits

Program match on contributions:

None

State tax deduction or credit for contributions:

A Virginia individual income tax deduction of up to $2,000 per account on contributions, with unlimited carryovers to the extent of the contributions.

State tax recapture provisions:

None

State tax treatment of qualified distributions:

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

State tax treatment of rollovers:

No portion of a rollover may be included in the gross income of the account owner or is subject to the additional 10% federal tax imposed on the earnings portion of certain non-qualified withdrawals.

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, IRC 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?

A card issued by PNC to access funds available in the ABLEnow Deposit Account

Statutory protection of an account from creditors:

PRO Premium subscription required for this data.

Distributions & Terminations

To whom are distributions made payable:

Account owners or authorized representatives can withdraw money from an account by using their ABLEnow Debit Card. Cash withdrawals are not permitted.

Account Changes

Policy regarding participant/owner changes:

Funds can be moved upon an account owner change to an eligible individual who is a member of the family.

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:

visit Enroll Now

Telephone:

1-844-669-2253

Twitter

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Facebook

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State News

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