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 type:

ABLE Savings Plan

How to enroll:

Enroll directly with the program.

Initial year of operation:


State agency(ies):

Tennessee Treasury Department

Program manager:

Tennessee Treasury Department

Investment Manager

The Tennessee Treasury Department with offerings from Vanguard, PRIMECAP, Dimensional Fund Advisors and First Tennessee Bank


State residency requirements:


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.


Maximum contributions:

The total annual contribution limit is $15,000 for all contributions, excluding Program-to-Program transfers into the plan. The total account contribution limit is $350,000.

Minimum contributions:

There is minimum $25 initial contribution per investment option required to open account.

Investment Options

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:


Account maintenance fee:


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 disbursements


Taxes and other Benefits

Program match on contributions:


State tax deduction or credit for contributions:


State tax recapture provisions:


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 eligibility

Amounts 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 provisions

Upon 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?


Statutory protection of an account from creditors:

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Distributions & Terminations

To whom are distributions made payable:

A withdrawal may be made payable to a designated beneficiary or the designated beneficiary's legal representative.

Account Changes

Policy regarding participant/owner changes:

A designated beneficiary or legal representative may change the beneficiary on an account at any time, as long as the new beneficiary is an eligible individual and a member or the family of the former beneficiary. Any changes require that ownership of the account also be transferred to the new designated beneficiary.

Documents, Access & Reporting

Does participant have online password-protected access to account?


Can the complete enrollment process including funding be done online?


Documents and other services accessible or downloadable on the program's public Web site:

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