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What kind of benefits do I get by opening an ABLE account? ›

One of the main benefits of having an ABLE account is being able to save for eligible expenses and to invest for the future in a tax-advantaged account. The account’s growth is tax free. As long as your balance stays below the $100,000 SSI limit, you can keep your SSI benefits and still qualify for Medicaid and other federal benefits (regardless of the amount saved in your account). Other benefits include a prepaid card to use for eligible expenses, and a simple and intuitive online platform to manage your account.
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Does having an account affect my other benefits? ›

No. You can keep your federal and state benefits (SSI, SSDI, Medicaid, SNAP, TANF, HUD Assistance, Section 8, etc.) with an ABLE account. If you receive SSI, there is a $100,000 limit before funds start counting against your $2,000 asset limit. As long as the money withdrawn is used for eligible expenses, it won’t count towards the limit. All housing expenses must be paid in the same month the money is withdrawn to keep your monthly cash benefits. All other benefits, like Section 8, are protected regardless of the amount saved in the account. 
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How can I use the money in my ABLE account? ›

You can withdraw money from the account and use it for eligible expenses, which includes most costs associated with living with a disability. See the list of approved categories of qualified disability expenses for more details. You can also sign up for an ABLE prepaid card and load money from an ABLE account and use it online or in stores all over the U.S.
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What is a qualified disability expense? ›

There’s a wide range of eligible expenses that cover most costs associated with living with a disability. Some of these include: living expenses, education, housing, transportation, employment, vacation, job training, career support, assistive technology, personal support services, health, prevention, wellness, financial management, administrative services, legal fees, funeral costs, burial expenses, and more. As long as the expense helps maintain or improve the health, independence, or quality of life of the person living with a disability, it can be considered a qualified disability expense.  Please read the Plan Disclosure for more information on qualified disability expenses. If asked by the IRS, the beneficiary or Authorized Legal Representative is responsible for providing ...
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What happens if I withdraw money for a non-eligible expense? ›

You’ll have to pay taxes on any non-eligible expense, plus a 10% penalty on the earnings portion of the withdrawal. A withdrawal used for a non-eligible expense could affect your eligibility for SSI benefits, Medicaid, or other much needed benefits under federal or state programs, as could a withdrawal that is applied to a housing expense in any month after the month of the withdrawal. 
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How does the account work? ›

Everything can be managed online. The money can be saved in a cash option and/or invested in one of the three investment options offered: ABLE Conservative, ABLE Moderate, and ABLE Aggressive. These choices are made during the account setup. By law, you can only make investment changes on your account twice each calendar year, and this includes changes to the allocation between cash/investment or changes to the investment option. You can initiate contributions and withdrawals whenever you want. 
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Are there any limits to how much I can contribute? ›

Annual Standard Contribution Limit There’s a $15,000 yearly limit for standard contributions, which includes any gift contributions made to your account. There is a $10 contribution minimum. ABLE to Work Contribution Limit With ABLE to Work, if a beneficiary is earning wages from employment, they can contribute an amount equal to the beneficiary’s current year gross income — up to $12,060 (as of 2018) each year — in addition to the yearly contribution limit of $15,000. If the beneficiary or their employer is contributing to a defined contribution plan (401K), annuity plan (403(b)), or deferred compensation plan (457(b)) this calendar year, the beneficiary is not eligible to make ABLE to Work contributions. Maximum Balance There is a maximum balance of $500,000 for each ...
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Who can contribute to my account? ›

Friends, family, and employers can make contributions to your account to help you reach your goals for the account. You can create and share a link to your Gifting Page or use the Gift Form to allow people to contribute directly to your account.
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How do I choose an investment option? ›

If you decide to invest all or some of the money, there are three investment options to pick from: ABLE Conservative, ABLE Moderate, and ABLE Aggressive. Each one has its benefits and limitation. We can help educate you on the differences between the three, but we can’t tell you which one to pick.  You can learn more about these options on the How it Works page and the Plan Disclosure.
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Can I change my investment option? ›

Yes, but under IRS requirements, you are only allowed to change your money allocation and/or investment type up to two times a year. Any changes will be applied to prior contributions, earnings, and future contributions. If you do make a change to your investment option, we’ll sell your units in the original option and use the proceeds to buy units in the new one. You can make a change online from your account or use the Investment Option or Allocation Change Form.
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What is a cash option? ›

A cash option is an alternative to investing. If you plan on spending money from the account in the near future, this option is faster to withdraw. Your assets are protected in an FDIC-insured account. Keep in mind that with a low level of risk there’s also a lower level of returns. See the Plan Disclosure for more information on FDIC insurance.
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What’s the difference between investment and cash options? ›

Money saved in a cash option could earn minimal interest. The interest will fluctuate slightly based on the interest rate of the U.S. capital markets. With an investment, you can choose from three portfolios to invest in based on your needs, and there’s a risk of losing your money, even your contributions, but you may also possibly earn more money over time. Also, withdrawals can take 2-7 business days to complete depending on how the money is allocated. Please read the Plan Disclosure for more information on the Investment Portfolios.
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