General InformationDownload PDF Report
The Louisiana Achieving a Better Life Experience (ABLE) Account Program allows individuals and families to save private funds to support persons with disabilities in endeavors to maintain health, independence, and quality of life.
- Program typeABLE Savings plan
- Investment ManagerThe Vanguard Group
- State agencyLouisiana Tuition Trust Authority (LATTA)
- Tax deduction
- Program ManagerLouisiana Tuition Trust Authority and Louisiana State Treasurer
- Manager contract termUNLOCK PRO
State residency requirements:Yes
Who can be a participant/owner in the program?Louisiana ABLE Accounts are available to eligible U.S. citizens and legal residents of the State of Louisiana with a valid Social Security number.
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.
Accepts contributions until all account balances in Louisiana's 529 plan for the same beneficiary reach $500,000.
Minimum contributions:An initial deposit is not required to open an ABLE Account; however, a deposit of $10 must be made within 180 days from the date on the letter of notification of approval of the account.
Target-Risk Options:Select among seven Vanguard fund options including the Vanguard Federal Money Market Fund
Fees & Expenses
Enrollment or application fee:None
Account maintenance fee:None
Program management fees:None
Expenses of the underlying investments:Ranges from 0.07% to 0.14%. The "Underlying Fund Expenses" are not charged directly to ABLE Accounts; however, the fee is deducted from the total funds invested in this equity investment and reduces the value of the ABLE Program units owned by the account owner.
Total asset-based expense ratio:0.07% to 0.14%
Fees or restrictions on the number of disbursementsDisbursements may be requested no more than twice per month and shall not be for an amount less than $200 unless the total LA ABLE Account balance is less than $200 and the intent is to close the account.
Taxes and other Benefits
- Tax deduction for single filers$2,400/yr
- Tax deduction for joint filers$4,800/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:Earnings credited to a LA ABLE Account that are subsequently refunded by LATTA are taxable for Louisiana state income tax purposes.
State tax treatment of qualified distributions:If a withdrawal is taken from an Account to pay for qualified disability expenses, the account owner generally does not have to include as income any earnings attributable to that withdrawal for the applicable taxable year if the total withdrawals for that year are less than or equal to the total withdrawals for qualified disability expenses for that year.
State tax treatment of rollovers:Louisiana follows federal tax-free treatment, though tax-free rollovers are restricted to once per 12-month period.
Medicaid eligibilityThe Louisiana ABLE Act provides the current value of a LA ABLE Account, and any contributions to or distributions from a LA ABLE Account shall be disregarded for the purpose of determining eligibility to receive, or the amount of, any assistance or benefit authorized to be provided to or for the benefit of a designated beneficiary by a means-tested federal assistance program during any period during which the beneficiary maintains, makes contributions to, or receives distributions from an ABLE account. As long as the balance in an account does not meet or exceed $100,000, the funds will not be not be counted as a resource for purposes of determining eligibility for SSI. In addition, if an account does meet or exceed $100,000, SSI will only be suspended; it will not be permanently canceled. Once the balance in the account goes below this $100,000 threshold, the SSI benefits can be reinstated.
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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