ENABLE ALABAMA

 

Call us:1-866-833-7949

 Email us: al.clientservices@enablesavings.com

You and others can save money for your financial future without impacting your benefits.

Earnings in an ABLE account are not taxed by the federal or state government. Money withdrawn from the account to pay for Qualified Disability Expenses3 is also not taxed.4

• Education (including tuition for preschool through post-secondary schools);

• Housing;

• Transportation;

• Employment training and support;

• Assistive technology and related services;

• Personal support services;

• Health, prevention and wellness;

• Financial management and administrative services;

• Legal fees;

• Expenses for oversight and monitoring;

• Funeral and burial expenses, and

• Other expenses to enhance the account owner’s quality of life.

1There is an annual contribution limit of $14,000 from all contributors to the account

2Account balances up to and including $100,000 will be disregarded for purposes of determining eligibility to receive resource-based benefits. When the total account balance exceeds $100,000, the amount over $100,000 will be used to determine if the account owner has exceeded the SSI resource limit of $2,000, whether alone or in combination with other resources. If the resource limit is exceeded, SSI benefits will be suspended until the account balance falls below $100,000. This suspension does not impact the account owner's ability to receive Medicaid.

3The earnings portion of a withdrawal not used for Qualified Disability Expenses is subject to federal and state income tax and may be subject to an additional 10% federal tax.

4Withdrawals from the account for a Qualified Disability Expense (other than housing) will be excluded from the account owner's resources if it is retained beyond the month received as long as the account is still open, the withdrawal is unspent, and the use of the withdrawal can be identified. Withdrawals from the account to pay for housing-related expenses must be spent within the month of the withdrawal. If the housing expense is paid after the month of withdrawal, it will be included as the account owner's income.

Total annual contributions into the account, regardless of who made the contribution, cannot exceed $14,000 per calendar year.

To determine if you are eligible, call your local Social Security office or your disability benefits advisor.

Opening an account is simple, and it can be done entirely online or, if you prefer, by filling out a paper Enrollment Form and mailing it to the Plan. The individual with disabilities is the account owner and the account owner owns the assets in the account.

There are some circumstances in which the account owner may need others to open and maintain the account on their behalf.

• If the account owner is a minor, a parent or guardian can open your account online or by completing an Enrollment Form.

• If the account owner has a legally authorized representative (guardian, conservator or legal power of attorney) that has financial responsibility for the account owner, that individual will need to complete a paper enrollment form and send in evidence of their responsibility.

When an account is opened, you or your legally authorized representative will be able to check a box indicating your disability and self-certify you are eligible to open an account. Additionally, you agree to notify the Plan if you no longer have an eligible disability.

Information needed to open an account

To open an account, you (and if applicable, the parent or guardian or legal representative) will need to tell us your name, address, Social Security or taxpayer identification number, birth date and email address. You will also need to select an Investment Option.

Account restrictions

• If an account owner receives Medicaid, his or her state that provided Medicaid services may seek to receive the balance in the account upon death. For those not receiving Medicaid benefits, any funds remaining in the account will be available to the estate.

• If the account owner is no longer an Eligible Individual, the account can remain open subject to certain restrictions.

Any person can contribute to your account – family, friends, a trust or estate, partnership, association, company or a corporation. No matter who contributes, you (or your legal representative) control the account and the assets in the account belong to you.

• Contributions must be in US dollars and cash is not accepted.

 

• Any person can contribute by check, electronic funds transfer from a bank account, or directly from a paycheck.

 

• Low contribution minimum

 

• To open an account, you need to contribute a minimum of $50. If you set up AIP or payroll deduction at the time of enrollment, the minimum contribution is $25. The minimum contribution amount after you have enrolled (called a “subsequent contribution”) is $25 and the $25 is waived if you have AIP or contribute through payroll deduction. Your account must have a minimum balance of $50 at all times.

 

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