Yes, you can rollover money from a 529 College Savings account into a beneficiary’s (or family member’s*) ABLE account without being penalized. There is a $15,000 rollover limit (less the current tax-year ABLE contributions). You can find the appropriate 529 College Savings to ABLE Rollover Form here. *The family member must be considered a qualified “Member of the Family” as defined by the 529 College Savings Plan, which includes: biological and step-parents, aunts, uncles, siblings, children, first cousins, nieces, and nephews; parents, siblings, children, nieces, and nephews by marriage; legally adopted children; and half-brothers or half-sisters) of the 529 College Savings account beneficiary
The ABLE to Work Act allows beneficiaries who are employed to contribute an amount equal to their current year gross income — up to $12,140 (as of 2019) each year — to their ABLE accounts in addition to the annual standard contribution limit. You can make an ABLE to Work contribution online or by using the Contribution Form. Keep in mind that 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.
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 As long as the money withdrawn is used for eligible expenses, it won’t count towards the limit. All housing expenses must be paid in the same month the money is withdrawn to keep your monthly cash benefits.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.
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 $12,140 (as of 2019) 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 ...
If you’re an eligible beneficiary with a Representative Payee, you can open an account for yourself. To have a Representative Payee open an account for you, they must meet the requirements of an Authorized Legal Representative (as a Power of Attorney, parent, or legal guardian). Because the role of Representative Payee is specific and unique to Social Security benefits, it doesn't apply to ABLE plans without Power of Attorney. Find out more about who can open an account.