General InformationDownload PDF Report
ABLE TN is administered by the Tennessee Department of Treasury and is a savings program designed to help individuals with disabilities put aside money to pay for qualified expenses. These accounts provide the opportunity to save and invest, with tax-free earnings, to help participants maintain independence and quality of life.
- Program typeABLE Savings Plan
- Investment ManagerThe Tennessee Treasury Department with offerings from Vanguard, PRIMECAP, Dimensional Fund Advisors and First Tennessee Bank
- State agencyTennessee Treasury Department
- Tax deduction
- Program ManagerTennessee Treasury Department
State residency requirements:None
Who can be a participant/owner in the program?An individual who has been diagnosed with a disability on or before age 26 may qualify by meeting one of the following: 1. Is eligible to receive Supplemental Security Income (SSI) 2. Is eligible to receive Social Security Disability Insurance (SSDI) 3. Has been diagnosed by a qualifying physician as having a physical or mental disability resulting in marked and severe functional limitations that is expected to last no less than 12 months.
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.
The total account contribution limit is $350,000.
Minimum contributions:There is minimum $25 initial contribution per investment option required to open account.
Target-Risk Options:The program offers offers 14 self-selected investment options.
Bank Money Market Investment / Checking Option:The interest bearing account investment option is FDIC-insured.
Fees & Expenses
Enrollment or application fee:None
Account maintenance fee:None
Program management fees:Program management fee ranges from 0.00% to 0.31%.
Expenses of the underlying investments:Ranges from 0.00% to 0.62%
Total asset-based expense ratio:0.00% - 0.62%.
Fees or restrictions on the number of disbursementsNone
Taxes and other Benefits
- Tax deduction for single filersNone
- Tax deduction for joint filersNone
Tennessee doesn't offer tax deductions
Program match on contributions:None
State tax deduction or credit for contributions:None
State tax recapture provisions:None
State tax treatment of qualified distributions:All contributions and withdrawals are exempt from state, county and municipal taxes.
State tax treatment of rollovers:TN follows federal tax-free treatment, though tax-free rollovers are restricted to once per 12-month period
Medicaid eligibilityAmounts contributed to or held in, and qualified withdrawals from, an ABLE TN account are disregarded for purposes of Medicaid benefits 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 provisionsUpon the death of the designated beneficiary, after all outstanding payments for qualified disability expenses are made, the applicable state's Medicaid program may claim up to an amount equal to the total medical assistance paid for the designated beneficiary after the establishment of the ABLE TN account.
Is there a debit card/ purchasing card available, and if so, at what cost?No
Statutory protection of an account from creditors:UNLOCK PRO
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