Texas

Program Name: Texas ABLE Program (click to open an account) Phone number: (1.844.489.2253)
Status: Open for Enrollment
State Program Manager: Orion Advisor Solutions, Inc.
State Account Limit: $500,000
Accepts Out Of State Residents: No
Annual Contribution Limit: $18,000 (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 his or her ABLE Account. The additional amount that may be contributed 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 the less. This is up to $14,580 for residents of Texas.
Program Banking Institution: Bank of the West
Number Investment Options: 5
Program Investment Institution(s): Vanguard, PIMCO, and Eaton Vance
Debit Card Or Prepaid Card: Yes
Withdrawal Hold Rules: Yes.   10 business days following the receipt of contributions by check if that contribution is needed to fund the withdrawal, 10 business days following the receipt of contributions electronically if that contribution is needed to fund the withdrawal; 10 business days following a change of address for either the beneficiary or ALR; 15 business days following a change of ALR
Medicaid Estate Recovery Status: Texas Medicaid is notified upon the death of a Texas ABLE beneficiary to determine if recovery will be made; ALR as determined by probated will can make withdrawals for expenses incurred prior to beneficiary's death and for funeral and burial expenses while Texas Medicaid determination is pending; within 14 business days, Texas Medicaid advises program if recovery will be made
State Income Tax Deduction: No. Texas does not have a state income tax.
FDIC Insured: Yes. Contributions to and earnings on investments in the Bank Savings Account Option are insured by the FDIC on a per participant, pass-through basis to each beneficiary up to the maximum amount set by federal law, currently $250,000.
ABLE Legislation:

Texas Education Code, Chapter 54, Subchapter J

Account Disclosure Document(s):

Please See Plan Disclosure Document


Additional Information:

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? no

Does your plan allow for proper account titling for a representative payee? no

What is your plan’s policy regarding payment of funeral / burial expenses as a qualified disability expense (QDE) prior to account freeze, if available?

Upon notification of the beneficiary’s death, the account is frozen until a probated will is provided that determines who will act as ALR of the account (the Executor of the will); once the ALR is determined, withdrawals for expenses incurred prior to the beneficiary’s death and for funeral and burial expenses can be made

 

 

Program at a Glance

  • Is there an initial minimum contribution requirement to open an ABLE account? If so, how much?
    Yes. $50.
  • Is there a required minimum contribution to your account? If so, what is the amount?
    Yes. $25.
  • Is there an annual set fee to maintain the account? If so, how much?
    Yes. $42
  • Are there fees or restrictions to the number of disbursement you are allowed? If so, what are they?
    Yes. $1 per ACH withdrawal in excess of two per month; $5 for each withdrawal by check
  • Is there a “debit card/purchasing card” available with the program? If so, what is the added cost?
    Yes. Loading funds onto the debit card is treated as an ACH withdrawal; each withdrawal in excess of 2 per month is subject to a $1 ACH processing fee. There are no monthly or purchase fees. After 90 days with no transactions, there is a $2 per month inactivity fee. See our website for other fees that might apply.
  • Can I roll over my ABLE account to another ABLE program? If so, what is the fee to do so?
    Yes. $0.
  • Fee Range
    • Annual Maintenance Fee:
      $42 per year payable at $3.50 per month.
    • Check Fee:
      Distributions by check can be authorized by the beneficiary or ALR, if any, but the program does not provide checks for use by the beneficiary or ALR
    • Debit Card Fee:
      The Program will charge $1.00 for each withdrawal by ACH in excess of two per month from your Texas ABLE account. Making a withdrawal to the Focus Card is considered an ACH withdrawal.
    • Investment Option Fee Range:

      Please See Program Disclosure Document

    • Statement Fee:
      No fee for electronic statements; $10 per year fee for paper statements
    • ABLE Account Transfer Fee:
      $0
    • Withdrawal Transaction Fee:
      $1 fee for each ACH withdrawal in excess of two per month; $5 fee for each withdrawal by check
  • Are there other characteristics unique to your program?

    A Texas ABLE account would not be counted as a resource when determining eligibility for certain state benefits.

    Where can I find the ABLE Plan’s investment performance information? https://www.texasable.org/investments/#investment-performance

    Description of plan’s Recertification of ABLE Eligibility Policy: Program Disclosure Statement advises that participants no longer meeting eligibility requirements should notify program in a timely manner; annual statements include reminder as well.

Texas ABLE Program (click to open an account) Phone number: (1.844.489.2253)