State residency requirements:No
Who can be a participant/owner in the program?An account may be opened by an eligible individual under section 529A or an authorized individual with valid power of attorney or the eligible individual's legal guardian or conservator.
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.
Did you know?
The plan can be used to pay for qualified disability expenses.
This can include education, job training and support, healthcare and financial management.
Savings in an ABLE account will not impact eligibility to receive government benefits.
The first $100,000 is exempt from the Supplemental Security Income limit, and beneficiaries will continue to receive Medicaid regardless of account size.
Residents are not limited to investing in their own state's ABLE plan.
Another state may offer a plan with better suited investment options, lower fees or preferred features.
Visit this plan's website to learn more
Maximum contributions:Annual contribution limit is currently $15,000 from all sources. If the beneficiary works, the beneficiary can also contribute part, or all, of their income to their ABLE account. This additional contribution is limited to the poverty-line amount for a one-person household. For 2018, this amount is $12,140. The designated beneficiary is not, however, eligible to make this additional contribution if their employer contributes to a workplace retirement plan on their behalf.
ABLE account beneficiaries can qualify for the Saver's Credit based on contributions they make to their ABLE accounts. Up to $2,000 of these contributions may qualify for this special credit designed to help low- and moderate-income workers.
Account balance limit of up to $400,000 per account owner. Assets can grow beyond $400,000.
Minimum contributions:The minimum initial contribution amount is $50 per account, waived with automatic investment plan or payroll deduction. The minimum subsequent contribution amount is $25, is waived if for automatic investment plan or payroll deduction.
Target-Risk Options:Select among 3 investment options: Growth, Moderate, and Conservative.
Bank Money Market Investment / Checking Option:An omnibus savings account insured by the FDIC and is held at First National Bank of Omaha. An FDIC-insured checking account is available through Fifth Third National Bank.
Fees & Expenses
Enrollment or application fee: None
Account maintenance fee:$45 annually, assessed at $11.25 per quarter.
Program management fees: 0.50%
Expenses of the underlying investments:Ranges from 0.05% to 0.06%, depending on the selected investment option. The checking option has no asset-based fees.
Total asset-based expense ratio:0.50% - 0.56%, depending on investment options chosen.
Fees or restrictions on the number of disbursementsContributions may not be withdrawn from an account for five business days after deposit.
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:There are no Alabama state income taxes due on investment earnings in an account in Enable Alabama when used to pay for qualified disability expenses.
State tax treatment of rollovers:The account owner will not be required to include any amount in computing Alabama taxable income as a result of a transfer of amounts from an account owner to the account of a different qualifying account owner, provided that in each case the new account owner is an eligible individual and a member of the family of the replaced account owner and the transfers occur either directly or by deposit to the new account in Enable Alabama (or other ABLE Program sponsored or participated in by the State of Alabama) within 60 days of the withdrawal from the prior account.
Medicaid eligibilityThe 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. The Centers for Medicare & Medicaid Services ("CMS") has issued guidance on how ABLE Account funds will be treated for purposes of determining 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 provisionsUpon the death of the account owner, Code 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. Procedures for filing claims may vary from state to state.
Is there a debit card/ purchasing card available, and if so, at what cost?Yes
Statutory protection of an account from creditors:UNLOCK PRO
Distributions & Terminations
To whom are distributions made payable:A qualified withdrawal will be distributed to the account owner. If there is an authorized individual on the account, a qualified withdrawal will be payable to the account owner. Distributions will be sent to the address on the account or a third party designated by the account owner.
Policy regarding participant/owner changes:You may direct a rollover from a plan account to an account in another qualified ABLE program for the same or another account owner who is a member of the family. Alternatively, you may make a withdrawal from your account and re-deposit the withdrawn balance within 60 days into an account in another qualified ABLE program for the same or another account owner.
Documents, Access & Reporting
Does participant have online password-protected access to account?Yes
Can the complete enrollment process including funding be done online?Yes, unless there is an authorized individual on the account.
Documents and other services accessible or downloadable on the program's public Web site:UNLOCK PRO