General InformationDownload PDF Report
The Texas Achieving a Better Life Experience (Texas ABLE) Program was established to encourage and assist individuals with disabilities and their families in saving funds to pay for many disability-related expenses critical to maintaining the individuals' health, independence, and quality of life. The Texas ABLE Program is established and maintained by the Texas Prepaid Higher Education Tuition Board with assistance from the Texas Comptroller of Public Accounts.
- Program typeABLE savings plan
- Investment ManagerAon Hewitt Investment Consulting, Inc.
- State agencyTexas Prepaid Higher Education Tuition Board with assistance from the Texas Comptroller of Public Accounts
- Program ManagerNorthStar Financial Services Group, LLC
- Manager contract termUNLOCK PRO
State residency requirements:Yes
Who can be a participant/owner in the program?An account may be opened by an eligible individual under section 529A or his/her authorized individual with legal guardianship or power of attorney.
Program restrictions:To be eligible for an ABLE savings plan, an individual must be a Texas resident, 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.
There is also a maximum account balance limit of $370,0000. However, assets can grow beyond $370,000 due to investment earnings without violating the maximum account balance limit.