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Maryland ABLE

Maryland ABLE is established pursuant to the ABLE Act and the Maryland Achieving a Better Life Experience Act signed into law April 12, 2016. Maryland ABLE is directed and administered by the Maryland 529 Board. Sumday Administration, LLC provides administrative and record-keeping services to the program under the direction of the Maryland 529 Board and Marquette Associates serves as investment advisor. The program is designed to be a "qualified ABLE Program", which status permits a beneficiary of an ABLE account established under the program to contribute and invest funds, enjoy tax-free growth on the earnings of the account, and make tax-free withdrawals to pay for qualified disability expenses under certain circumstances.

  • Program typeABLE Savings Plan
  • Investment Manager
    Marquette Associates
  • Inception2017
  • State agency
    The Maryland 529 Board
  • Program Manager
    Sumday Administration, LLC


State residency requirements:


Who can be a participant/owner in the program?

An account may be opened by a qualified beneficiary under Section 529A or, if one is designated, his/her authorized 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:

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.

Account balance limit of up to $500,000 over the life of the account.

Minimum contributions:

The minimum initial contribution amount to open an account is $25. The minimum subsequent contribution amount is $10.

Investment Options

Target-Risk Options:

Select among 3 portfolio options: ABLE Conservative Investment Option, ABLE Moderate Investment Option, and ABLE Aggressive Investment Option, as well as a Cash Option.

Bank Money Market Investment / Checking Option:

The Cash Option offers FDIC insurance protection for amounts contributed to the cash option

Fees & Expenses

Enrollment or application fee:


Account maintenance fee:

$35 annually

Program management fees:

State administrative fees of 0.30%

Expenses of the underlying investments:

Ranges from 0.0628% to 0.0781%, depending on the selected investment option; none for the Cash Option.

Total asset-based expense ratio:

0.30% - 0.3781%, depending on the selected investment option

Fees or restrictions on the number of disbursements

There is a $2.50 fee on each paper check disbursement, as well as a $15 fee on outgoing wires, as well as for the re-issue of disbursement checks.

Taxes and other Benefits

Program match on contributions:


State tax deduction or credit for contributions:

Each beneficiary or individual who contributes to the beneficiary's ABLE account can deduct up to $2,500 of contributions each year from his/her Maryland income per beneficiary; $5,000 for two, $7,500 for three, etc. Contributions in excess of $2,500 can be deducted for up to the next 10 years. Contributions in following years could be eligible for deduction; however, more than $2,500 per beneficiary may not be deducted in any year and the 10-year limit on each year's contribution may not be extended.

State tax recapture provisions:


State tax treatment of qualified distributions:

If a qualified withdrawal is made from an ABLE account, no portion of the distribution may be included in the gross income of the beneficiary for purposes of federal and Maryland state income taxes.

State tax treatment of rollovers:

No portion of a rollover or a program-to-program transfer is includable in the gross income of the beneficiary for purposes of federal and Maryland state income taxes, or is subject to the additional 10% federal tax imposed on the earnings portion of certain non-qualified withdrawals.

Medicaid eligibility

The 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 provisions

Under Section 529A, following the death of the beneficiary, any state may file a claim against the ABLE 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 to the ABLE account). The amount paid in satisfaction of such a claim is not a taxable distribution from the ABLE account. Further, the amount is to be paid to the claiming state only after the payment of all outstanding payments due for the qualified disability expenses, which include burial and funeral expenses, of the beneficiary and is to be reduced by the amount of all premiums paid by or on behalf of the beneficiary 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, Beneficiaries who wish to use a pre-paid card must pay $1.25/monthly to do so.

Statutory protection of an account from creditors:


Distributions & Terminations

To whom are distributions made payable:

Only the beneficiary, or, if one has been named, the authorized legal representative, may direct withdrawals from an ABLE account.

Account Changes

Policy regarding participant/owner changes:

A change in the beneficiary of an ABLE account is not treated as a distribution and is not subject to federal gift or GST taxes if the new beneficiary is an eligible individual and a sibling of the current beneficiary. However, if the new beneficiary is not a sibling of the current beneficiary, the change is treated as a non-qualified withdrawal by the current beneficiary and may have federal gift tax or GST tax consequences.

Documents, Access & Reporting

Does participant have online password-protected access to account?


Can the complete enrollment process including funding be done online?


Documents and other services accessible or downloadable on the program's public Web site: