General InformationDownload PDF Report

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ABLEnow

The ABLEnow Program allows eligible individuals to save for qualified disability expenses on a tax-advantaged basis without jeopardizing eligibility for federal means-tested benefits, such as Supplemental Security Income and Medicaid.


  • Program typeABLE Savings plan
  • Investment Manager
    Underlying mutual funds managed by Vanguard and Fidelity; Deposit Account maintained by PNC Bank
  • Inception2016
  • State agency
    Virginia College Savings Plan
  • Tax deduction
    Tax deduction for single filers $4,000/yr
    Tax deduction for joint filers $4,000/yr
  • Program Manager
    Virginia College Savings Plan

Ratings & Rankings

Our overall rating for VA residents

This is a recent program and does not yet have a 5-Cap Rating assigned.

Our overall rating for non-residents

This is a recent program and does not yet have a 5-Cap Rating assigned.

Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories.

Eligibility

State residency requirements:

No

Who can be a participant/owner in the program?

The account owner must be an eligible individual for whose benefit all contributions are made.

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?

  • VA residents can claim a tax deduction for contributions to a VA 529 plan.

    Contributions are deductible in computing state taxable income

  • 529 plan contributions grow tax-free.

    Withdrawals are tax-free when used to pay for qualified higher education expenses.

  • You can contribute as much as you want, as often as you want.

    The key is to get started. Enroll today by completing a quick form online.

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Contributions

Maximum contributions:

The Annual Contribution Limit is currently $15,000 per account from all sources. The Program's Maximum Account Balance Limit is currently $500,000. No additional contributions may be made for the benefit of an Account Owner when the fair market value of his or her account is greater than or equal to $500,000. If, however, the market value of the Account falls below the Maximum Account Balance Limit, additional contributions may be made.

Minimum contributions:

There is no minimum initial contribution amount or minimum subsequent contribution amount, however the first $2,000 will be held in the deposit account and only additional funds may be allocated to other investment options.

Investment Options

Target-Risk Options:

Select among 4 portfolio options: Aggressive Growth, Moderate Growth, Conservative Income, and Money Market

Bank Money Market Investment / Checking Option:

Money Market investment option, as well as a PNC ABLEnow deposit account

Fees & Expenses

Enrollment or application fee:

None

Account maintenance fee:

$3.25/monthly

Program management fees:

0.10% and 0.15% on investment balances for the PNC and ABLEnow Administrative Fees, respectively

Expenses of the underlying investments:

Ranges from 0.12% to 0.15%, depending on the selected investment option

Total asset-based expense ratio:

0.37% - 0.40%, depending on the selected investment option

Fees or restrictions on the number of disbursements

Although there is no limit on the number of transactions (contributions/withdrawals) that can be requested and processed by the account custodian on behalf or an owner, the account dustodian reserves the right to limit the frequency and minimum dollar amount of withdrawals.

Taxes and other Benefits

  • Tax deduction for single filers$4,000/yr
  • Tax deduction for joint filers$4,000/yr

Example

Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.

Program match on contributions:

None

State tax deduction or credit for contributions:

A Virginia individual income tax deduction of up to $2,000 per account on contributions, with unlimited carryovers to the extent of the contributions.

State tax recapture provisions:

None

State tax treatment of qualified distributions:

If a qualified withdrawal is made from an account, no portion of the withdrawal, including earnings, may be included in the gross income of the account owner.

State tax treatment of rollovers:

No portion of a rollover may be included in the gross income of the account owner or is subject to the additional 10% federal tax imposed on the earnings portion of certain non-qualified withdrawals.

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 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, IRC Section 529A permits a state to file a claim for the amount of 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 the qualified disability 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.

Is there a debit card/ purchasing card available, and if so, at what cost?

A card issued by PNC to access funds available in the ABLEnow Deposit Account

Statutory protection of an account from creditors:

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Did you know?

  • Residents are not limited to investing in their own state's 529 plan.

    Another state may offer a plan that performs better and has lower fees.

  • The 529 plan chosen does not affect which state the student enrolls in.

    You can live in New York, open a plan from Nevada and send a student to college in Florida.

  • The best way to maximize your college savings?

    Start early and save often. You can get started today with easy online enrollment.

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Distributions & Terminations

To whom are distributions made payable:

Account owners or authorized representatives can withdraw money from an account by using their ABLEnow Debit Card. Cash withdrawals are not permitted.

Account Changes

Policy regarding participant/owner changes:

Funds can be moved upon an account owner change to an eligible individual who is a member of the family.

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:

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Contact

Telephone:

1-844-669-2253

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Start saving for your child's future today


Step 1

Click the blue Enroll Now button to the right

Step 2

Complete the online application and make your first deposit

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