Texas
Program Name:
Texas ABLE Program (click to open an account) Phone number: 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 receipt of contributions by check or ACH if needed to fund withdrawal or following a change of address; 15 business days following change of ALR
Medicaid Estate Recovery Status: Texas Medicaid does recovery of any expenses paid for an ABLE beneficiary while the ABLE account was open, including Texas residents who open ABLE accounts in other states
State Income Tax Deduction: No. Texas does not have a state income tax.
FDIC Insured: Yes. Bank of the West; account is FDIC-insured up to $250,000
ABLE Legislation:
Texas Education Code, Chapter 54, Subchapter J
Account Disclosure Document(s):Please See Plan Disclosure Document
The account owner can establish their own account online or contact customer service for assistance in establishing an account.
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, for accounts established by a rep payee, the organization that employs the rep payee is listed as the ALR.
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 death of the account beneficiary, a copy of the death certificate is requested. The program allows payment of funeral and burial expenses before Medicaid Recovery. A copy of the benefciary’s will is requested to make sure remaining funds are distributed according to law.
Account balances are generally not considered as a resource for purposes of determining a beneficiary’s eligibility to receive benefits or the amount of the assistance or benefits provided by the state of Texas.
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. $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. Two free ACH withdrawals per month, $1 for each additional withdrawal. A withdrawal to the debit card is considered an ACH withdrawal. Once funds are on the debit card, no additional withdrawal fees apply. -
Is there a “debit card/purchasing card” available with the program? If so, what is the added cost?
Yes. $0 -
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:
$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:
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Statement Fee:
$0 if electronic or $10 per year if paper option is selected -
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
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Annual Maintenance Fee:
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Are there other characteristics unique to your program?
Program is administered by the Texas Prepaid Higher Education Tuition Board, chaired by the Texas Comptroller. A Texas ABLE Advisory Committee has been established by the Board to provide guidance to the Board about Texas ABLE. An eGift option is available.
Does your plan allow for different Levels of Control for who manages spending and investments from the ABLE account? If the beneficiary is unable or prefers not to manage their own account, they can have someone manage it for them (Authorized Legal Representative “ALR”) according to the hierarchy allowed by IRC, Sec. 529A. Even if the ALR manages the account, they can allow the beneficiary to have a debit card in their name to help them learn about managing funds.
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.
