General InformationDownload PDF Report
IABLE is offered through the National ABLE Alliance. The program is sponsored and administered by Michael L. Fitzgerald, Treasurer of the State of Iowa. IAble is part of the Iowa Able Savings Plan Trust, which was created under the state legislation in 2015. IAble, established as an investing vehicle to encourage and make possible savings to secure funding for disability-related expenses on behalf of individuals with disabilities, is designed to qualify for treatment as a qualified ABLE program under Section 529A and any regulations and other guidance issued thereunder.
- 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 agencyTreasurer of State of Iowa as Trustee of the Iowa ABLE Savings Plan Trust
- Tax deduction
- Program ManagerAscensus
- Manager contract termUNLOCK PRO
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: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.
No additional contributions may be made for the benefit of an account owner when the fair market value of the account exceeds the account balance limit of $420,000. Accounts that have reached the account balance limit may continue to accrue earnings, although future contributions may not be made to such accounts. If however, the market value of such account falls below the account balance limit due to market fluctuations and not as a result of withdrawals from such account(s), additional contributions will be accepted.
Minimum contributions:The initial and additional contribution minimum is $25.
Target-Risk Options:Select among 6 portfolio options: Aggressive Option, Moderately Aggressive Option, Growth Option, Moderate Option, Moderately Conservative Option, or Conservative Option.
Bank Money Market Investment / Checking Option:None, but the conservative option allocates 60% to a Sallie Mae Bank High-Yield Savings Acount
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
Total asset-based expense ratio:0.34% - 0.37%, depending on the investment option chosen
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$3,387/yr
- Tax deduction for joint filers$6,774/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:Iowa individual taxpayers who make a contribution can deduct up to $3,319 for 2018 (adjusted annually for inflation) of their contributions including rollovers from a Non-Iowa 529A plan, in determining their adjusted gross income for Iowa income tax purposes.
State tax recapture provisions:None
State tax treatment of qualified distributions:Any earnings on contributions are not subject to Iowa state income tax, which means account assets grow free of current Iowa income tax and are tax-free if withdrawn.
State tax treatment of rollovers:Iowa 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?Yes, the IAble Plan offer a checking option with a debit card tied directly to a Fifth Third checking account.
Statutory protection of an account from creditors:UNLOCK PRO
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