ABLE Act Savings Account FAQs
- What does the Social Security Administration have to say about ABLE Accounts?
- How does Colorado Medicaid view ABLE accounts?
- How does the federal Medicaid program recommend treating ABLE Accounts?
- How much do you need to open an account?
- What is the annual contribution limit for 2018?
- Can I roll over a 529 College Savings Plan into an ABLE account?
- What are the administrative fees for an ABLE Account?
- Where can I open an ABLE Account?
- Who can start an ABLE Account? Who can contribute to one?
- Where can I learn more?
SSA has specifically addressed ABLE Accounts/529A Accounts in its POMS (Program Operations Manual System), the rules under which SSA operates. Read more about their specific treatment of funds in an ABLE account by clicking the link above this text.
How does Colorado Medicaid view ABLE accounts? Colorado Medicaid has published a regulation that states that funds in an ABLE Account "will not count as a resource for eligibility purposes for any Medicaid category that has an asset test." Read it in full by clicking the link above.
Additionally, the national Center for Medicare and Medicaid Services released a letter to provide guidance to state Medicaid programs. Click the link above the text to read the full content of that letter.
How much do you need to open an account?
The minimum contribution is $25 to open an ABLE account through Colorado ABLE. Other states' programs may have different minimums.
What is the annual contribution limit for 2018?
The limit for 2018 is $15,000 worth of contributions from all sources. Per the Tax Cuts and Jobs Act, individuals who are working can contribute additional funds (up to an additional $11,770 per year) to the ABLE account.
Can I roll over a 529 College Savings Plan into an ABLE account?
Yes! Per the Tax Cuts and Jobs Act, roll-overs from a 529B plan are permitted into ABLE up to the maximum contribution cap/year.
What are the administrative fees for an ABLE Account?
In the Colorado ABLE program, the annualized investment costs on assets per investment option range from 0.34% to 0.38%, depending on which investment option(s) you select. Each Account is charged an account maintenance fee of $15 each quarter. This fee can be discounted by $3.75 if you select email delivery for statements and confirmations. Other states' programs may have different charges.
ABLE account programs are delivered at the state level, and all transactions are online. You may open your ABLE account in any state that accepts outside residents into their program, regardless of your own state of residence. The ABLE National Resource Center (ANRC) provides a state-by-state comparison. Click on the link above to go to ANRC's site.
Who can start an ABLE Account? Who can contribute to one?
Individual beneficiaries, parents, grandparents, guardians can start accounts for an individual. Anyone (Individual, family members, friends) may contribute to that account once it's established.
Consider downloading our presentation on ABLE Accounts. It goes into a bit more detail, as well as having embedded links to other ABLE resources. Click the link above to download a copy of that document as a .pdf.