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MiABLE

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MI resident benefits

MiABLE Michigan is offered through the National ABLE Alliance. MiABLE 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.

OVERVIEW

Program type

ABLE Savings plan

Investment manager

BlackRock, Capital Group, Fifth Third Bank, Schwab and Vanguard as the investment managers or providers of their respective Underlying Investments.

Inception

2016

State agency

Michigan Department of Treasury

Program manager

Ascensus College Savings Recordkeeping Services, LLC

Manager contract term

MORE INFORMATION

Eligibility

State residency requirements:

Who can be a participant/owner in the program?

An account may be opened to save for Qualified Disability Expenses by (i) an Eligible Individual or (ii) a Designated Representative on behalf of an Eligible Individual.

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.

Contributions

Maximum contributions:

Annual contribution limit is currently $19,000 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 2025, this amount is $15,060. 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.

There is also an aggregate account balance limit of $500,000. However, assets can grow beyond $500,000 due to investment earnings without violating the aggregate account balance limit.

Minimum contributions:

$25 per account unless the account owner signs up for the automatic investment plan (AIP) or payroll deduction of at least $15 per payroll. The minimum subsequent contribution amount is $25, but is waived if the account owner is signed up for AIP or payroll deduction.

Investment Options

Target-Risk Options:

Select among 7 portfolio options: Aggressive Option, Moderately Aggressive Option, Growth Option, Moderate Option, Moderately Conservative Option, Conservative Option or Money Market Option.

Bank Money Market Investment / Checking Option:

A checking option with Fifth Third Bank, which invests 100% of its assets in an FDIC-insured checking account.

Fees & Expenses

Enrollment or application fee:

None

Account maintenance fee:

$56, assessed at $14 per calendar quarter. The Annual Account Maintenance Fee will be $31.00 if Electronic Delivery is established for the Account, and will be withdrawn from the Account in the amount of $7.75 quarterly. The Plan may also reduce the Annual Account Maintenance Fee an additional $5.00 per year if the Account Owner or Authorized Individual is a resident of the State.

$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:

0.26% for all portfolios

Expenses of the underlying investments:

Ranges from 0.05% to 0.10%. None for the Bank Money Market Investment Option

Total asset-based expense ratio:

0.31% - 0.36%

Fees or restrictions on the number of disbursements

None, but a $25 fee applies to all outgoing wires and priority delivery service

Taxes and other Benefits

Program match on contributions:

None

State tax deduction or credit for contributions:

Contributions to a plan account are deductible, in an amount not to exceed $10,000 for married taxpayers filing jointly ($5,000 for single taxpayers and for married taxpayers filing separate returns), in computing the contributor's taxable income under Michigan law.

State tax recapture provisions:

None

State tax treatment of qualified distributions:

The earnings portion of a non-qualified withdrawal may be subject to a partial recapture of any Michigan state income tax deduction previously claimed.

State tax treatment of rollovers:

Michigan follows federal tax-free treatment.

Medicaid eligibility

The ABLE Act is designed to ensure that the value of any and all assets purchased using funds from an ABLE account that are qualified disability expenses will not count for the purposes of determining eligibility for Medicaid, and that once an asset is purchased it will not be subject to further review. 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

Upon the death of the account owner or eligible individual, Code Section 529A permits a state to file a claim for 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 account). The amount of the claim is to be paid only after the payment of all outstanding payments due for qualified disability expenses, including end of life, death and burial 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. Designated representatives, executors, and personal representatives of estates may want to consider obtaining advice of the 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?

Yes, available summer 2017. There will be no additional fees associated with the card, except for a replacement fee if the card is lost.

Statutory protection of an account from creditors:

Distributions & Terminations

To whom are distributions made payable:

Qualified withdrawals will be payable to the account owner. Distributions will be sent to the address on the account, a third party designated by the account owner or by ACH.

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

Yes

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

Contact

Website:

https://www.miable.org/

Telephone:

844-656-7225

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