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Oklahoma STABLE

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OK resident benefits

The State of Oklahoma has partnered with the State of Ohio to offer Oklahoma STABLE, a program that offers the STABLE Account Plan to eligible Oklahoma residents. The STABLE Account Plan is established pursuant to Ohio law (Ohio Revised Code §113.50-§113.56) in accordance with Section 529A, and is structured and operated by the Ohio Treasurer's Office and its Service Providers.

OVERVIEW

Program type

ABLE Savings plan

Investment manager

Marquette Associates is the Investment Advisor, and The Vanguard Group and Fifth Third Bank are the providers of the investment options.

Inception

2018

State agency

Oklahoma State Treasurer

Program manager

Sumday Administration, LLC

Manager contract term

MORE INFORMATION

Eligibility

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.

Contributions

Maximum contributions:

Annual contribution limit is currently $17,000 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 2023, this amount is $1,580. 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 a lifetime account limit of $450,000, at which point no new contributions may be made.

Minimum contributions:

The minimum initial contribution amount is $25.00 per STABLE Account. The minimum subsequent contribution amount is $1.00 per STABLE Account.

Investment Options

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:

None

Account maintenance fee:

$39, $9.75 quarterly per STABLE account

Program management fees:

State administrative fee of 0.19%

Expenses of the underlying investments:

Ranges from 0.11% to 0.14%, none for the BankSafe option

Total asset-based expense ratio:

0.19% - 0.33%, depending on the selected investment option

Fees or restrictions on the number of disbursements

None

Taxes and other Benefits

Program match on contributions:

None

State tax deduction or credit for contributions:

Beginning with 2021 income tax filing, contributions to an Oklahoma STABLE plan of up to $10,000 per year by an individual, and up to $20,000 per year by a married couple filing jointly, will be deductible in computing Oklahoma taxable income. Earnings grow tax-deferred from Oklahoma state income tax and are not subject to Oklahoma state income tax while they remain in an Oklahoma STABLE account.

State tax recapture provisions:

None

State tax treatment of qualified distributions:

There is no Oklahoma state income tax on qualified withdrawals, rollovers for program-to-program transfers.

State tax treatment of rollovers:

There is no Oklahoma state income tax on qualified withdrawals, rollovers for program-to-program transfers.

Medicaid eligibility

Under the ABLE Act, funds in your STABLE Account should be disregarded (i.e., treated as an excluded resource) for purposes of determining your eligibility for Medicaid benefits. Additionally, suspension of SSI benefits due to a STABLE Account balance of over $100,000 will have no effect on Medicaid eligibility.

Medicaid recapture provisions

Under 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 STABLE Account (or any ABLE account from which amounts were rolled or transferred to the current 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:

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 a STABLE Account.

Account Changes

Policy regarding participant/owner changes:

A change in the beneficiary of a STABLE 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?

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://okstable.org/

Telephone:

800-439-1653

Email:

team@stableaccount.com

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