ABLE Account Decision Guide Series

Finding the Funds to Save in an ABLE Account

An ABLE account receives contributions from the ABLE account owner and/or from other persons. (“Persons” is defined as trust, estate, partnership, association, company, or corporation.) A monetary contribution is initially needed to open the ABLE account and then it is recommended, but not required, that over time, additional contributions/deposits be made to add to or to replenish the account following distributions for Qualified Disability Expenses (QDEs). The contributions are subject to the annual limit (by the account owner, his or her parents, other family members, and/or by the trustee of a special needs trust (SNT) (trust defined as person by the IRS) or a pooled trust.  Contributions can also be made through permitted rollovers from other ABLE accounts or 529 college savings accounts.

See ABLE Case Summary 5: A Range of Strategies for Funding an ABLE Account, https://www.ablenrc.org/wp-content/uploads/2019/07/Range-of-Strategies-for-Funding-ABLE-FINAL.pdf. Note: SSA policy currently prohibits directly depositing SSI and/or SSDI benefits, including retro-benefits into an ABLE account when there is a representative payee. However, opportunities for ABLE account owners to demonstrate money management skills and request the opportunity to manage their own benefits and money is an option. https://www.ssa.gov/payee/faqbene.htm

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To begin, choose the a source for the contribution:

 

Note: Our ABLE Decision Guide Series is designed as an aid to decision making as it relates to establishing and using an ABLE account. This document does not cover every possible issue related to the topic and is not a substitute to more in-depth analysis that may be required in some cases.