Click here for the Presentation Outline in Word Doc format
Below is the text outline for our ABLE today national presentation and introduction on ABLE Accounts. The idea for providing this accessible resource was mentioned to Eric Ochmanek by an advocate / member of the National Federation of the Blind at their national conference.
Slide 1 - Cover slide
ABLE Accounts, Expanding Financial Empowerment and Community Inclusion for People with Disabilities.
ABLE today’s website is abletoday.org.
Slide 2 - About ABLE today
ABLE today is part of the National Association of State Treasurers (NAST) Foundation campaign to promote ABLE accounts, financial empowerment, and community inclusion for people with disabilities.
ABLE today was generously provided with founding philanthropic support from Wells Fargo.
Slide 3 - Who is this presentation for?
We provide resources and participate in presentations, both online and in-person, to share information and help answer questions about ABLE accounts.
We believe those that could benefit from information and an introduction regarding ABLE accounts include the following but not limited to:
A person with a disability including those that plan their finances month-to-month to ensure that they do not lose benefits such as SSI or Medicaid and those that are not utilizing public benefits but want to plan for the future;
A family member or caregiver of a person with a disability including those that are concerned how the person with the disability will live, work and enjoy their community in the future; and
And disability services including disability benefits providers, Social Security Representative Payees, financial advisors, social needs planners and or trust lawyers.
Slide 4 - ABLE enrollee examples Amanda and Dalton
Meet Amanda. She is 13 years old, has a physical disability and will utilize Medicaid services throughout her life. Amanda’s parents are saving for her to go to college. Her parents are concerned about who will support and care for Amanda when they are gone. Amanda’s parents want to plan for her future.
Meet Dalton. He is 34 years old, has a developmental disability and is employed. Dalton receives SSI, which he uses for his monthly rent payments. He wants to purchase his own home one day, but because of SSI limits, Dalton cannot save up money for a down payment. Dalton wants to pan for his future and keep his benefits.
Slide 5 - Imagine if people with disabilities could….
Could save money in their own names - and more than just $2,000.
Accumulate wealth without losing eligibility for benefits.
Work without having to “spend down” their current or future income.
And could move from a monthly financial plan to a lifetime financial plan.
Slide 6 - What is an ABLE account?
ABLE accounts are savings, investment and spending tools, built specifically for people with disabilities, that allow individuals to save money without impacting public benefits.
ABLE accounts are offered under Section 529A of the U.S. Tax Code.
Slide 7 - ABLE accounts by the numbers
ABLE accounts are offered through state-run ABLE programs.
Currently, there are 46 states and the District of Columbia that offer ABLE programs. Consider your home state’s program first for instate incentives, or research ABLE programs offering nationwide enrollment.
Through December 2023, there are over 162,000 total ABLE accounts, increasing everyday.
There is also over $1.74 billion dollars in ABLE accounts. People with disabilities and their families are using ABLE accounts as savings, checking and investment accounts. The amount of money flowing through these financial vehicles keeps growing and growing.
Visit our website to find your state’s program: abeltoday.org/able-programs.
Slide 8 - Key benefits of ABLE accounts
Multiple functions including short-term spending and long-term savings.
Opportunity for financial empowerment and community inclusion.
An alternative option to ‘spending down’ and remain on public benefits.
ABLE accounts are owned by the person with the disability.
Easy to open, close, and use - they are similar to a regular bank account.
Tax-free earnings and some states offer tax deductions and or credits.
Slide 9 - Eligibility
ABLE accounts are for individuals whose disability began before age 26. Eligible individuals can open an ABLE account at any age.
The disability must be long-term (for more than 12 months) and must cause “marked and severe functional limitations.”
Additionally, you can be eligible for an ABLE account if a doctor has diagnosed you with a disability (physical or mental) or you are eligible to receive SSI and or SSDI due to your disability.
Note: You do not have to be on public benefits to open an ABLE account.
Slide 10 - How to open an ABLE account
Almost all ABLE programs have online enrollment.
To find your ABLE program, for more information and for examples visit abletoday.org/able-programs.
ABLE programs allow you to either enroll online, submit a paper application and or enroll in a bank branch.
Flexible enrollment allows for the individual with the disability to open and administer their own ABLE account, or a ABLE support person can oversee the account management.
Slide 11 - Who can serve as an ABLE account Support Person
People with disabilities can open and administer their own ABLE accounts.
An ABLE Support Person can be an individual or an organization.
ABLE Supporters can manage multiple accounts at once.
There is an hierarchy (order) for who can be an ABLE Support Person which is: Power of Attorney, Conservator, Guardian, Spouse, Parent, Sibling, Grandparent, and then a Social Security Representative Payee.
Slide 12 - Example of how Amanda’s account is administered
Amanda’s mom opened her ABLE account online in about 20 minutes.
Amanda is listed as the account owner, but her mom is listed as the support person.
Amanda’s mom handles the day-to-day management of the account, including the contributions and withdrawals.
Slide 13 - Getting money into an ABLE account
ABLE offers a variety of options for getting money into the account including:
General banking options such as depositing money electronically or by check;
Most programs allow for payroll deductions and e-gifting; and
Funds in a college 529 savings account can be rolled over into an ABLE account.
Slide 14 - How much can you contribute
ABLE accounts have annual contribution limits based on the IRS gift tax exclusion and employment status.
As of 2024, the annual contribution limit into an ABLE account is $18,000. Contributions can come from any source including directly from the ABLE account enrollee, family, friends, organizations, nonprofits, and employers.
As of 2024, if the ABLE enrollee is employed, the ABLE enrollee can contribute up to an extra $14,580 more every year, if they are not contributing to their workplace retirement account.
The limit as of 2024, for an ABLE enrollee that is working is $32,580 for the 48 contiguous States and District of Columbia residents; $34,770 for Hawaii residents; and $36,210 for Alaska residents.
Slide 15 - Example of how Dalton contributes to his ABLE account
Dalton set up a direct deposit feature with his employer to automatically contribute part of his paycheck into his ABLE account every month.
On an annual basis, Dalton can contribute up to $14,580 (depending on how much income he earns).
Dalton sues e-gifting and receives $5,000 annually from family and friends.
So, before ABLE, Dalton’s resource limit was $2,000 a month. But now through an ABLE account he can save up to $19,580 every year.
Slide 16 - Annual costs
ABLE programs have fees associated with the ABLE accounts.
The annual fees for the accounts range from $0 to $60 and asset-based fees range from 0% to 0.9% amongst the various state ABLE programs.
Please visit our website to find your state’s program and review the costs associated with the ABLE account at abletoday.org/analyze-able-programs.
Slide 17 - Investment options
Most ABLE accounts offer multiple places to put your money.
You can pick one option or spread your money across multiple options.
Choose from checking and savings options that are FDIC insured or from market-based investment options such as stocks, bonds, etc.
Slide 18 - Spending ABLE funds
ABLE accounts have a broad-based spending power for qualified disability expenses. A qualified disability expense is anything that relates to the disability and helps maintain or improve health, independence, or quality of life.
Examples of categories for qualified disability expenses include: housing and rent, transportation, assistive technology, health and wellness, basic living expenses, education financial management, and legal fees.
Slide 19 - How to withdraw money from an ABLE account
Different ABLE programs have various options to withdraw funds including utilizing checkbooks, third party checks, purchasing cards such as debit cards, and bank transfer.
Slide 20 - Special benefits rules for SSI and Medicaid
If you receive SSI, balances over $100,000 start counting towards SSI resource limits. Also, if you withdraw funds from your ABLE account to use for housing, you must spend it within the same calendar month.
If you receive Medicaid, there is no balance limit that would then count towards the resource limit. Medicaid payback still applies to ABLE accounts, just as it applies to other bank accounts - check with your state to confirm.
Slide 21 - What if I already have or am considering a special needs trust?
Great! You can use both! ABLE accounts can complement a trust.
Special needs trusts (SNTs) can accept larger annual deposits than ABLE accounts can. People frequently put large deposits into a trust, and then regularly transfer that money to an ABLE account for easy access.
ABLE accounts can be also be helpful as they are often far less expensive to set up and maintain, do not require an attorney’s help, expand the purchasing power of a trust, some states offer deductions or credits for contributions, can be established, administered and owned by the individual with the disability, and gives people with disabilities additional autonomy to save and spend their own money.
Slide 22 - Next steps
Research ABLE programs via our ABLE today website abletoday.org/analyze-able-programs.
Helps us spread the word either by sharing information on ABLE via email, social media, and with your network.
Reach out via info@abletoday.org to partner together for a group presentation.
Slide 23 - Resources
ABLE Accounts are a game changer for financial empowerment and community inclusion. To learn more visit our resources:
Recorded presentation with ASL, voiceover, and closed captioning. The URL is : abletoday.org/asl
Recorded webinar with the U.S. Social Security Administration. The URL is: abletoday.org/ssa
The ABLE today podcast discusses ABLE accounts, success stories, and interviews advocates from around the country. The URL is abletoday.org/podcast
ABLE regulations and how federal agencies interact with ABLE accounts including SSI, Medicaid, HUD and SNAP. The URL is: abletoday.org/regulations
ABLE Resources for Employers. The URL is: abletoday.org/for-employers
Slide 24 - Thank you!
Thank you on behalf of ABLE today, Wells Fargo and the National Association of State Treasurers Foundation.
Visit abletoday.org for more information on ABLE accounts.