FAQs
Answers at your fingertips
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- Benefits
- Contributions
- Eligibility
- General
- Gifting
- How it Works
- Linking Bank Accounts
- Opening an Account
- Prepaid Card
- Qualified Expenses
- Successors and Estates
- Tax Benefits
- 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,... Read more
- Can I use funds to pay for housing or rent?
- Yes, you can use money from an ABLE account for housing expenses. If you’re eligible for Supplemental Security Income (SSI), the money must be used within the month it was withdrawn so it doesn’t affect your SSI eligibility. Plus, having an ABLE account doesn’t affect other housing benefits, like... Read more
- How do I prove an eligible expense?
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Keep your receipts and documentation for all eligible expenses in case the IRS wants to see them. We don’t need proof of your expenses, but you should have it for your records.
- 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, or for housing expenses even if they are qualified disability expenses, could affect your eligibility for Supplemental Security Income... Read more
- Will having an account make me ineligible for Medicaid?
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No. Having an ABLE account doesn’t count towards your eligibility for Medicaid regardless of the amount saved in the account.
- Can I transfer an existing ABLE account into my Washington State ABLE Savings Plan account?
- Yes, you can use the ABLE to ABLE Rollover Form to get started. Keep in mind that you can only make one rollover every 12 months. A Washington State ABLE Savings Planaccount can also be rolled over to an eligible member of the family if the rollover happens before the death of the original... Read more
- How is this different from a Special Needs Trust or Pooled Trust?
- A Washington State ABLE Savings Plan account does not replace a Special Needs Trust or Pooled Trust. There are some key differences that are meant to give people living with disabilities and their families more options. With a Washington State ABLE Savings Plan account: There are fewer expenses... Read more
- Is the ABLE account considered part of the estate after the death of a beneficiary?
- Yes. As part of the estate, funds in the ABLE account are subject to federal estate tax. After the death of the beneficiary, the remaining funds will be taxed and can be used to pay any outstanding qualified disability expenses of the decedent and any State claim under section 529A(f) before they... Read more
- What is a designated successor beneficiary
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A successor beneficiary is an individual that the beneficiary designates as a successor to their Washington State ABLE account upon the death of the beneficiary. A successor beneficiary must meet eligibility requirements to open an account and must be a sibling of the beneficiary.
- What do I need to do with my IRS Form 5498-QA form?
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Keep this form in your records for future reference. You're not required to file it with your tax return.