General InformationDownload PDF Report
The DC ABLE Program is offered through the National ABLE Alliance. The program is created under the District of Columbia's ABLE Program Trust Establishment Act of 2015 to authorize the establishment of savings accounts empowering individuals with a disability and their families to save private funds to support the individual with a disability and to provide guidelines for the maintenance of such accounts.
- Program typeABLE Savings plan
- Investment ManagerUnderlying 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 agencyGovernment of the District of Columbia, Office of Finance and Treasury
- Tax deductionTax deduction for single filers $4,000/yrTax deduction for joint filers $8,000/yr
- Program ManagerAscensus
- Manager contract termUNLOCK PRO
Ratings & Rankings
Our overall rating for non-residents
This is a recent program and does not yet have a 5-Cap Rating assigned.
State residency requirements:No
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.
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: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.
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: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 if the owner is a District of Columbia resident.
$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 disbursementsNone, but a $25 fee applies to all outgoing wires and priority delivery service
Taxes and other Benefits
- Tax deduction for single filers$4,000/yr
- Tax deduction for joint filers$8,000/yr
Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.
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 District of Columbia income taxes due on investment earnings in an account in DC ABLE 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 D.C. 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 DC ABLE within 60 days of the withdrawal from the prior account.
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.
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:UNLOCK PRO
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