Program Name: PA ABLE Savings Program
Program Manager: Ascensus
Program Investment Institution: BlackRock, Schwab, and Vanguard
Program Website: PA ABLE Savings Program
Total Annual Contribution Limit: $15,000
Account Limit: $511,758
State Tax Deduction: Pending (HB 1319)
Additional Information: HB 1319 (which would allow for a state income tax deduction was amended on 3/21/16 in the Senate. SB 879 which establishes the framework to begin to develop a state ABLE program was signed into law 4/18/16. The Governor included a $4 million appropriation for ABLE in the budget proposal for FY 2016-2017.
Program at a Glance
- What is the total annual contribution limit? $15,000
- Does this program offer enrollment to out of state residents? Yes.
- Is there a state income tax deduction or credit for contributions made into accounts opened in this state by state residents? If so, how much? No.
- Who is the program administrator? Pennsylvania Treasury Department
- Is there an initial minimum contribution requirement to open an ABLE account? If so, how much? Yes.
- Is there an annual set fee to maintain the account? If so, how much? Yes. There is an annual account maintenance fee. That fee is $60 which is discounted to $45 for those Account Owners who receive specified Account information electronically. The fee is taken quarterly ($15 or $11.25).
- Is there a required minimum contribution to your account? If so, what is the amount? Yes. $25
- Are there fees or restrictions to the number of disbursement you are allowed? If so, what are they? No.
- Can I roll over my ABLE account to another ABLE program? If so, what is the fee to do so? Yes. There are currently no fees associated with rolling over your ABLE account from one ABLE program to another ABLE program.
- Is there a “debit card/purchasing card” available with the program? If so, what is the added cost? Yes. A $2.00 monthly fee is associated with utilizing the debit card option, however the fee can be waived with an average daily balance over $250 or if enrolled in electronic statement delivery at Fifth Third bank.
- Who is the investment manager? BlackRock, Schwab, Vanguard, and for high-yield savings Sallie Mae
- How many investment options are associated with the program? Investment Options include six Asset-allocation Investment Options.
- Do those investment options vary in risk? Investment Options include six Asset-allocation Investment Options ranging from aggressive to conservative as well as a Checking Account Option.
- Is there a fee associated with the investment choices? If so, how much? Yes. The Asset-allocation Investment Options have annual asset-based fees ranging from 0.34% to 0.38%. The Checking Account Option has a monthly fee of $2.00, which may be waived given certain requirements.