General InformationDownload PDF Report
The Commonwealth of Kentucky has partnered with the State of Ohio to create STABLE Kentucky, a program that offers the STABLE Account Plan to eligible Kentucky residents for lower annual investment fees than would otherwise be available.
- Program typeABLE Savings plan
- Investment ManagerMarquette Associates is the Investment Advisor, and The Vanguard Group and Fifth Third Bank are the providers of the investment options.
- State agencyKentucky State Treasurer
- Tax deductionTax deduction for single filers NoneTax deduction for joint filers None
- Program ManagerIntuition ABLE Solutions
- 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:Yes
Who can be a participant/owner in the program?An account may be opened by a qualified beneficiary under section 529A or by an authorized legal representative on his/her behalf.
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 plan's annual contribution limit is currently $15,000 per year per beneficiary from all sources. If employed, up to $27,060 per year.There is also a lifetime account limit of $462,000, at which point no new contributions may be made.
Minimum contributions:The minimum initial contribution amount is $50.00 per STABLE Account. The minimum subsequent contribution amount is $1.00 per STABLE Account.
Target-Risk Options:Select among four Investment Options: Income, Conservative Growth, Moderate Growth, Growth.
Bank Money Market Investment / Checking Option:The BankSafe Option offers FDIC insurance protection for amounts invested in the option, up to FDIC-permitted limits. The option allocates 100% of its assets to Fifth Third Bank's BankSafe Product.
Fees & Expenses
Enrollment or application fee:There is no application fee for online enrollments, but a fee of $50 will be assessed to all paper applications
Account maintenance fee:$42, $3.50 monthly per STABLE account
Program management fees:State administrative fee of 0.19%
Expenses of the underlying investments:Ranges from 0.12% to 0.15%, none for the BankSafe option
Total asset-based expense ratio:0.19% - 0.34%, depending on the selected investment option.
Fees or restrictions on the number of disbursementsNone
Taxes and other Benefits
- Tax deduction for single filersNone
- Tax deduction for joint filersNone
Kentucky doesn't offer tax deductions
Program match on contributions:None
State tax deduction or credit for contributions:None
State tax recapture provisions:None
State tax treatment of qualified distributions:Contributions to the plan are not deductible for Kentucky state income tax purposes. The Kentucky Department of Revenue has not yet issued further guidance regarding the Kentucky state income tax treatment of STABLE Accounts.
State tax treatment of rollovers:Kentucky follows federal tax-free treatment, though tax-free rollovers are restricted to once per 12-month period.
Medicaid eligibilityUnder Kentucky Revised Statutes § 205.200(10)(a), any amount in a STABLE Account, any contributions to the account, and any distributions for qualified disability expenses from the account, will not be considered when determining a person's eligibility for any means-tested public assistance program.
Medicaid recapture provisionsUnder Section 529A, following the death of the beneficiary, any state may file a claim against the beneficiary or the STABLE Account itself for the amount of the total medical assistance paid for the beneficiary 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 STABLE Account). The amount paid in satisfaction of such a claim is not a taxable distribution from the STABLE Account.
Is there a debit card/ purchasing card available, and if so, at what cost?Beneficiaries can transfer funds from STABLE Account onto the STABLE Card and use the card to pay for qualified disability expenses.
Statutory protection of an account from creditors:UNLOCK PRO
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