General InformationDownload PDF Report
NY ABLE
NY ABLE is issued by New York Achieving a Better Life Experience (ABLE) Savings Account Program and administered by the Office of theComptroller of the State of New York, who serves as program administrator.
- Program typeABLE Savings plan
- Investment ManagerVanguard
- Inception2017
- State agencyOffice of the Comptroller of the State of New York
- Tax deduction
- Program ManagerAscensus
- Manager contract termUNLOCK PRO
Eligibility
State residency requirements:
YesWho can be a participant/owner in the program?
An account owner must be a New York resident, and 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
Contributions
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.
The Maximum Account Balance allowed under NY ABLE is $100,000.
Minimum contributions:
The initial and additional contribution minimum is $25.Investment Options
Target-Risk Options:
Select among 4 portfolio options: Aggressive, Moderate, Intermediate, and Conservative.Bank Money Market Investment / Checking Option:
An FDIC-insured checking account is available through Fifth Third National Bank.Fees & Expenses
Enrollment or application fee:
NoneAccount maintenance fee:
$13.75 quarterly with paper delivery for statements and confirmations, $11.25 quarterly if the account owner opts for electronic delivery.$2 monthly service charge for investments in the Checking Option, waived for accounts with an average daily balance of more than $250 or electronic statement delivery.
Program management fees:
0.36% to 0.38%Expenses of the underlying investments:
0.02% to 0.04%Total asset-based expense ratio:
0.40%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
- Tax deduction for single filers$5,000/yr
- Tax deduction for joint filers$10,000/yr
Example
Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.
Program match on contributions:
NoneState tax deduction or credit for contributions:
NoneState tax recapture provisions:
NoneState tax treatment of qualified distributions:
New York follows federal tax treatment of earnings on an ABLE account. Earnings on investments in NY ABLE are federally tax-deferred and tax-free if used for qualified disability expenses.State tax treatment of rollovers:
New York follows federal tax-free treatment of rollovers, though tax-free rollovers are restricted to once per 12-month period.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 of the Code, 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 to or for the account owner under the state's Medicaid plan after the account (or any ABLE account from which amounts were rolled over or transferred to the current account) was opened. The amount paid in satisfaction of a Medicaid recapture claim is not a taxable withdrawal from the account and is paid only after all outstanding amounts due for Qualified Disability Expenses of the account owner have been paid. In addition, the amount of the recapture is 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, investors in the Checking Option may obtain a debit card at no charge.Statutory protection of an account from creditors:
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