ABLE Accounts: 10 Things You Should Know
How Will I know Which State ABLE Program is Right for Me?
By the Summer of 2016, we expect that several states will have opened ABLE programs and be inviting eligible individuals nationwide to open an ABLE account regardless of their state of residence. When comparing State ABLE programs you may want to consider the following questions in order to find a program that best meets your needs:
Opening an Account
- What proof will the ABLE program require for you to document in order to open an account or show that your disbursements are qualified expenses?
- Is there a minimum contribution to open an ABLE account?
- Is there a fee to open an account and, if so, how much is that fee?
Maintaining the Account and Fees
- Is there a required minimum contribution to your account? If so, what is the amount?
- Are the fees front end loaded or are they reduced if you leave your funds invested for several years?
- Are there restrictions on how often you can withdraw funds from your account?
- What are the investment options the state ABLE program offers?
- Are the options likely to meet your needs for limiting risk with the growth of your contributed dollars to the ABLE account?
- Does the program offer any unique or value added program elements to help you save, contribute to your account, grow the account, and manage your invested dollars?
- Does the state program offer any unique or value added program elements (such as a match or rewards program, financial literacy info or program for beneficiaries) to help you save, contribute to your account, grow the account, and manage your invested dollars? If so, what is it?
Unique to Your State
- Does your state have a program and, if so, do they offer a state income tax for contributions to their account?
- Is there a “debit card/purchasing card” available with the program? Are there added costs to this?
For a more detailed understanding of how you can begin to comparing programs and things to think about when preparing to opening an ABLE account, please click here.
Reprinted courtesy of ABLE National Resource Center
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