How it Works
Save, invest, and spend with a plan that stands by you
Opening an account
You can open a Washington State ABLE account in as little as 10 minutes. We’ll ask for some information about the beneficiary, the qualifying disability, and how your account will be funded. To complete the setup, you’ll allocate money. There’s a $25 minimum deposit to start off your account and a $10 minimum for any contribution after that.
Your Washington State ABLE account can be linked to your bank account. You can save money through your account in a cash option, and/or an investment option. Then, when you are ready to use your saved funds, simply transfer them from your ABLE account to your bank account, or prepaid ABLE card, to use on eligible expenses.
You can save your money in one or more of four different investment options: the cash option, conservative option, moderate option, and aggressive option. The choice is up to you.
Picking an investment option
The investment option you choose may depend on what type of investor you are. A good place to start is to understand what risk is and to gauge your risk tolerance.
If you’re a “saver” rather than an “investor,” and if you think you’ll need to withdraw funds sooner than later, the cash option could be a good option for you. The cash option does not have exposure to the financial markets so it is not exposed to market fluctuations. Returns will vary based on prevailing interest rates. This option protects your assets more than other types of investments because your contributions are made to an account that is FDIC-insured.
If you’re an “investor”, there are three investment portfolios to choose from: ABLE Conservative, ABLE Moderate, or ABLE Aggressive. Each investment option has its own benefits and limitations. It’s up to you to decide which one is right for you.
Cash Option
The Cash Option allocates 100% of its assets to a demand deposit account established by the Trust at Bank of New York Mellon. Overall, there’s a smaller amount of risk and limited appreciation potential compared to the other investment options. This investment option is designed for a shorter investment period.
ABLE Conservative
ABLE Conservative seeks to provide current income with some growth by investing in a portfolio of mutual funds that consists of approximately 20% global public stocks and 80% bonds. Overall, there’s a smaller amount of risk and limited appreciation potential compared to the other investment options. This investment option is designed for a shorter investment period.
ABLE Moderate
ABLE Moderate seeks to provide a combination of growth and current income by investing in a portfolio of mutual funds that consists of approximately 50% global public stocks and 50% bonds. Overall, there’s a medium level of risk and potential investment return (or loss) as compared to the other investment options. This investment option is designed for a medium or uncertain investment period.
ABLE Aggressive
ABLE Aggressive seeks to provide long-term growth by investing in a portfolio of mutual funds that consists of approximately 80% global public stocks and 20% bonds. Overall, there’s a higher level of risk and potential for investment return (or loss) as compared to the other investment options. This investment option is designed for a longer investment period (10 years or more).
For more detailed information on the investment options, including investment objectives and risks, please see the Plan Disclosure Booklet.
You can also check out the Performance History of these investment options.
Adding money
With the online platform powered by Vestwell, adding money to your account is simple and intuitive. Your bank account is securely connected to the Washington State ABLE account to protect your information. You can add money whenever you want, even as little as $1 at a time, to help you reach the $19,000 yearly maximum.
There are a number of ways you can build your savings, including:
One-time contributions
Recurring contributions
SSA direct deposit
Payroll direct deposit
ABLE to Work
Gifting
Tax credits
Learn more about contributions
Withdrawing money
You can withdraw a minimum of $10 online from your ABLE account to deposit to your bank account or load your prepaid card.
Fees
There are low asset-based fees charged by Washington State ABLE ranging between 0.30% and 0.38% of your account’s balance per year. These costs include the underlying mutual fund fees paid to the Washington State ABLE administrators to support the operations of Washington State ABLE. There is also an annual maintenance fee of $35 charged to each account. Additional fees are added when you opt out of electronic statements or request a withdrawal check, instead of doing everything online. You can check them out in our Fees FAQ.