Colorado ABLE


The Colorado ABLE Program is offered through the National ABLE Alliance. The program is established under the state's ABLE legislation and Section 529A and implemented by CollegeInvest, a not-for-profit division within the Colorado Department of Higher Education. It allows an account owner to save for qualified disability expenses without disqualification from federal benefits.


Program type:

ABLE savings plan

How to enroll:

Enroll directly with the program

Initial year of operation:


State agency(ies):

Colorado ABLE @ CollegeInvest

Program manager:


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 and Fifth Third Bank provides a checking account product.


State residency requirements:


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


Maximum contributions:

The annual contributions to an account from all sources cannot exceed the annual contribution limit, which currently is $15,000. The assets in an account cannot exceed the account balance limit of $400,000.

Minimum contributions:

The initial and additional contribution minimum is $25.

Investment Options

Target-Risk Options:

Six target-risk options, in which the asset mix (or allocation) seeks to meet a specific investment goal and risk tolerance. The target-risk options include: Aggressive, Moderately Aggressive, Growth, Moderate, Moderately Conservative, and Conservative.

Bank Money Market Investment / Checking Option:

A checking option with Fifth Third Bank, which invests 100% of its assets in an FDIC-insured checking account.

Fees & Expenses

Enrollment or application fee:


Account maintenance fee:

$60, assessed at $15 per calendar quarter. The quarterly fee is discounted by $3.75 for account owners who elect to receive statements via electronic delivery.

$2 monthly service charge for investments in the Checking Option, waived for accounts with an average daily balance of more than $250.

Program management fees:

0.32%; none for the Checking Option

Expenses of the underlying investments:

Ranges from 0.02% to 0.05%, depending on the investment option chosen; none for the Checking Option

Total asset-based expense ratio:

0.34% - 0.37%, depending on the investment option chosen; none for the Checking 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:


State tax deduction or credit for contributions:


State tax recapture provisions:


State tax treatment of qualified distributions:

The earnings portion of qualified withdrawals will not be included in taxable income for Colorado state tax purposes.

State tax treatment of rollovers:

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

Medicaid eligibility

The CMS guidance can be found at Implications of the ABLE Act for State Medicaid Programs on the CMS website. Please consult with your state's Medicaid office with any additional questions.

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?

Investors in the Checking Option may use a debit card to access funds.

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?


Can the complete enrollment process including funding be done online?


Documents and other services accessible or downloadable on the program's public Web site:

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