Alabama
Program Name:
Alabama ABLE Savings Plan (click to open an account) Phone number: 1-833-711-2253
Status: Open for Enrollment
ABLE Plan Flyer: https://www.alabamaable.gov/assets/docs/about-al-able.pdf
State Program Manager: Vestwell
State Account Limit: $475,000
Accepts Out Of State Residents: Yes
Rep. Payee Multiple Access:
Yes. Rep. Payees and Organizations can serve as Authorized Representative for all of the individuals they support. For more information or to register visit: https://www.washingtonstateable.com/alr-info/org-alr/registration
Annual Contribution Limit: $20,000 (This limit is a Federal limit that is required of all states and does not include additional ABLE to Work contributions)
ABLE To Work Act Contribution: An Account Owner who is employed and who is not contributing to a defined contribution plan, an annuity contract or an eligible deferred compensation plan may contribute additional money to their ABLE Account. The additional amount that may be deposited is an amount equal to the Account Owner’s employment income or equal to the poverty line for a one-person household for the prior calendar year, whichever amount is less. This is up to $15,650 for residents of the continental U.S.; $19,550 for residents of Alaska and $17,990 for residents of Hawaii.
Program Banking Institution: BNY Mellon
Number Investment Options: 3
Program Investment Institution(s): Vanguard
Debit Prepaid Card Feature: Yes, the ABLE plan True Link Cards offer different levels of spending on qualified disability expenses and tracks QDEs for the ABLE account owner and authorized legal representative.
Withdrawal Hold Rules: Yes.
5 day hold on account owner or Authorized Legal Representative contributions, 10 day hold on third party contributions
Medicaid Estate Recovery Status: Upon the death of the ABLE account owner, after the payment of outstanding Qualified Disability Expenses (which may include funeral and burial expenses), funds may be used to reimburse the state for Medicaid-related services. The amount of any Medicaid payback is calculated based on amounts paid by Medicaid after the creation of the ABLE account and excludes amounts paid by the beneficiary as premiums to a Medicaid buy-in program. Any remaining funds are payable to the Estate or to a successor designated beneficiary if one was appointed before the death of the original account owner.
State Income Tax Deduction: Yes. 5,000 for single filers and $10,000 for joint filers.
FDIC Insured: Yes. BNY Mellon FDIC Insured account up to $250,000.
ABLE Legislation:
Alabama Senate Bill 226 implements the federal ABLE act in Alabama
Account Disclosure Document(s):Please See Plan Disclosure Document
There are no restrictions on the number of disbursements you can make from your ABLE account. However, please note that withdrawals to ABLE cards are subject to a daily limit of $5,000 and a monthly limit of $20,000.
Do you have a policy for opening an account for an account owner who does not have a guardian or conservator for managing spending and investments from the ABLE account? Yes, we follow the Final IRS Regulations regarding who can serve as Authorized Legal Representative. See here for more information: https://www.washingtonstateable.com/alr-info
Does your plan allow for proper account titling for a representative payee? ABLE accounts allow for both the beneficiary’s and the Authorized Legal Representative’s (including Representative Payee) name.
What is your plan’s policy regarding payment of funeral / burial expenses as a qualified disability expense (QDE) prior to account freeze, if available? Funeral and burial expeses are Qualified Disability Expenses.
Does your plan allow for naming any beneficiary on the account? Yes, we allow for Successor Owners of the account for siblings with disabilities of the account owner. We are also establishing a process to name beneficiaries that do not qualify as Successor owners on the account.
Program at a Glance
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Is there an initial minimum contribution requirement to open an ABLE account? If so, how much?
Yes. $25. -
Is there a required minimum contribution to your account? If so, what is the amount?
Yes. $5. -
Is there an annual set fee to maintain the account? If so, how much?
Yes. $35.00 per year charged quarterly in the amount of $8.75 -
Are there fees or restrictions to the number of disbursement you are allowed? If so, what are they?
No. -
Is there a “debit card/purchasing card” available with the program? If so, what is the added cost?
Yes. $5.00/month -
Can I roll over my ABLE account to another ABLE program? If so, what is the fee to do so?
Yes. $0. - Fee Range
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Annual Maintenance Fee:
$35 per year. -
Debit Card Fee:
$5.00 per month -
Investment Option Fee Range:
-
Statement Fee:
No fee for electronic statements. $20 annually for mailed paper statements. -
ABLE Account Transfer Fee:
$0 -
Withdrawal Transaction Fee:
$0
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Annual Maintenance Fee:
-
Are there other characteristics unique to your program?
Alabama ABLE offers direct deposit for Social Security funds for account owners who have a representative payee. On the go account management can be done through the Vestwell mobile app. There is also a savings booster feature that allows auto contributions based on defined criteria.
We offer a Mobile App to allow you to manage your account on the go. We also offer E-gifting option to set up and run gifting campaigns for the beneficiary.
Does your plan allow for different Levels of Control for who manages spending and investments from the ABLE account? Yes, the ABLE plan may allow for different levels of account access for the owner and Authorized Legal Represenative.
Recertification of disability policy: The account owner or Authorized Representative is asked to notify the program if their eligibility changes.
Where can I find the ABLE Plan’s investment performance information? https://www.alabamaable.gov/hi
Description of plan’s Recertification of ABLE Eligibility Policy: Certification is completed via self attestation at the time that the account is opened. An account holder attests that they willnotify the Program if eligibilty status changes.
The plan has a mobile app on both Andriod and IOS, ability to direct deposit payroll deductions or SSA benefits, and there is also a savings booster program.