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Washington State ABLE Savings Plan
The Washington State ABLE Savings Plan is established pursuant to the ABLE Act and the Washington Achieving a Better Life Experience Act ("The Washington Act"). The plan is designed to be a "qualified ABLE program", which status permits a beneficiary of an ABLE account established under the plan to make tax-free withdrawals to pay for qualified disability expenses under certain circumstances.
- Program typeABLE Savings Plan
- Investment ManagerSellwood Consulting, LLC
- State agencyGoverning Board of the Washington Achieving a Better Life Experience Program
- Tax deduction
- Program ManagerSumday Administration, LLC
- Manager contract termUNLOCK PRO
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
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.
The maximum account balance cannot exceed $500,000. ABLE accounts that have reached the limit may continue to accrue earnings but can not continue to accept contributions.
Minimum contributions:The minimum initial contribution amount is $25 per ABLE account. The minimum subsequent contribution amount is $10 per ABLE account.
Target-Risk Options:Select among three Investment Options: ABLE Conservative, ABLE Moderate and ABLE Aggressive.
Bank Money Market Investment / Checking Option:The Cash Option deposits 100% of its funds into an FDIC-insured account with The Bank of New York Mellon
Fees & Expenses
Enrollment or application fee:None
Account maintenance fee:$35 annually, waived through June 30, 2019; $10 additional annual fee for printing and mailing paper documents
Program management fees:Administrative fee of 0.30%
Expenses of the underlying investments:Ranges from 0.0538% to 0.0702%
Total asset-based expense ratio:0.30% to 0.3702% depending on the selected investment option
Fees or restrictions on the number of disbursementsThere is a $2.50 fee on each paper check disbursement, as well as a $15 fee on outgoing wires, as well as for the re-issue of disbursement checks.
Taxes and other Benefits
- Tax deduction for single filersNone
- Tax deduction for joint filersNone
Washington doesn't offer tax deductions