General InformationDownload PDF Report
INvestABLE Indiana is offered through the National ABLE Alliance. INvestABLE is established under the state's ABLE legislation and Section 529A to encourage and assist individuals and families in saving private funds for the purpose of supporting individuals with disabilities. The plan allows for the creation of tax-advantaged savings accounts for individuals with disabilities to pay for disability related expenses without endangering access to vital public benefits.
- 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.
- State agencyThe Indiana Achieving a Better Life Experience Authority
- Tax deductionFor single filers, 20% on up to $5,000/yrFor joint filers, 20% on up to $5,000/yr
- Program ManagerAscensus College Savings Recordkeeping Services, LLC
- 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:Accepts contributions until all account balances in Indiana's 529 plan for the same beneficiary reach $450,000.
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, 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.
$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
- For single filers, 20% on up to $5,000/yr
- For joint filers, 20% on up to $5,000/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:For Indiana state income tax purposes, annual earnings of an ABLE account shall be exempt from tax, and shall not be included in the Indiana income of the account owner. The earnings portion of a withdrawal to pay for qualified disability expenses is also not subject to Indiana state income tax.
State tax treatment of rollovers:Indiana follows federal tax-free treatment of rollovers, though tax-free rollovers are restricted to once per 12-month period.
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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