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Alaska ABLE Plan
The Alaska ABLE Plan is offered through the National ABLE Alliance. The plan is established under the Alaska ABLE Savings Program Act and Section 529A to provide financial accounts for individuals with disabilities. The Alaska ABLE Plan is created within the Alaska Department of Revenue, which is the state agency responsible for implementing and administering the Alaska ABLE Plan.
- Program typeABLE Savings plan
- Investment ManagerBlackRock, Sallie Mae Bank, Schwab, Vanguard and Fifth Third Bank.
- State agencyAlaska Department of Revenue
- Tax deduction
- Program ManagerAscensus
- Manager contract termUNLOCK PRO
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 his/her authorized individual with legal guardianship or power of attorney.
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 $15,180. 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 initial and additional contribution minimum is $25.
Target-Risk Options:Select among 6 target risk options: Aggressive Option, Moderately Aggressive Option, Growth Option, Moderate Option, Moderately Conservative Option, Conservative Option.
Bank Money Market Investment / Checking Option:None, but the conservative option allocates 60% to a Sallie Mae Bank High-Yield Savings Acount. An FDIC-insured checking account option is available through Fifth Third Bank.
Fees & Expenses
Enrollment or application fee:None
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 and further discounted by $1.25 per quarter for residents of Alaska.
$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% for all investment options; none for the checking option.
Expenses of the underlying investments:Ranges from 0.02% to 0.06%, depending on the investment option chosen
Total asset-based expense ratio:0.34% - 0.38%, depending on the investment option chosen.
Fees or restrictions on the number of disbursementsNone, though the plan reserves the right to establish a minimum withdrawal amount.
Taxes and other Benefits
- Tax deduction for single filersNone
- Tax deduction for joint filersNone
Alaska doesn't offer tax deductions
Program match on contributions:None
State tax deduction or credit for contributions:Not applicable. Alaska does not have a personal income tax.
State tax recapture provisions:Not applicable. Alaska does not have a personal income tax.
State tax treatment of qualified distributions:Not applicable. Alaska does not have a personal income tax.
State tax treatment of rollovers:Not applicable. Alaska does not have a personal income tax.
Medicaid eligibilityThe 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 provisionsUnder 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. Procedures for filing claims may vary from state to state. Authorized individuals and executors and administrators should consider seeking legal counsel on the applicability of, and any available exceptions to, Medicaid recapture under applicable state law and regulation.
Is there a debit card/ purchasing card available, and if so, at what cost?Not at this time.
Statutory protection of an account from creditors:UNLOCK PRO
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