Federal Guidance

Documents included under this category were not developed by the ABLE National Resource Center, but are a combination of various federal agency publications whose programs may interact with ABLE accounts and/or funds in an ABLE account.

These resources, in many cases, serve as vitally important pieces of information that explain how ABLE accounts and ABLE programs operate and confirm the protection of an individual’s eligibility for different federally-funded, means-tested benefits, despite having significant funds in the ABLE account. This is the only centralized location to access all of these extremely important documents.

The documents included under this section consist of the following:

Social Security Administration (SSA) Guidance on ABLE

This document provides information on how funds in an ABLE account may interact with Social Security benefits, specifically Supplemental Security Income (SSI). This document also confirms that funds in an ABLE account will not be taken into consideration when determining eligibility for SSI.

Centers for Medicare and Medicaid Services (CMS) Guidance on ABLE

This document provides information on how funds in an ABLE account may interact with Medicaid eligibility. This document also confirms that funds in an ABLE account will not be taken into consideration when determining eligibility for Medicaid.

U.S. Department of Agriculture (USDA) Guidance on ABLE

This document provides information on how funds in an ABLE account may interact with Supplemental Nutrition Assistance Program (SNAP) eligibility. This document also confirms that funds in an ABLE account will not be taken into consideration when determining eligibility for SNAP.

U.S. Department of Education Free Application for Federal Student Aid (FAFSA)

The Free Application for Federal Student Aid does not count the ABLE account balance as a countable resource. “Investments do not include the home you live in, the value of life insurance, ABLE accounts, retirement plans (401[k] plans, pension funds, annuities, non-education IRAs, Keogh plans, etc.) or cash, savings and checking accounts already reported in questions 40 and 88.

U.S. Department of Housing and Urban Development (HUD)

This document provides information on how funds in an ABLE account may interact with U.S. Department of Housing and Urban Development (HUD) eligibility. This document also confirms that funds in an ABLE account will not be taken into consideration when determining eligibility and continued occupancy for HUD.

U.S. Department of Treasury/IRS:

On November 19, 2020, the Internal Revenue Service (IRS) published the final regulations for the ABLE Act in the federal register under Section 529a, of the IRS code. The regulations provide guidance to individuals and to states in their management of ABLE plans as tax-favored savings and investment accounts and defines qualified disability expenses. The IRS regulations, which are effective November 19, 2020, provide a transition period of at least two years for ABLE plans to implement these rules which gives the IRS an opportunity to address concerns and issues through notices or other guidance. Certain select provisions from the final regulations are summarized in the ABLE NRC’s Highlights and Key Takeaways document. Note: ABLE to Work Act was incorporated into Final Regulations.

The IRS provides details about the Tax Cuts and Jobs Act of 2017 and how certain ABLE account owners who work may qualify to save above the $15,000 annual ABLE contribution limit, and may also qualify for the saver’s credit when filing their income taxes. For more information see ABLE to Work Act Fact Sheet

The ABLE Act falls under section 529a of the IRS tax code and the IRS provides key information, including tax-related information about the accounts in “ABLE accounts are a valuable benefit for taxpayers with disabilities” and ABLE Account IRS Tax Tip Video: English  Spanish  ASL

Depending on your adjusted gross income reported on your Form 1040 series return, the amount of the credit is a percentage of contributions made to an ABLE account for which you are the designated beneficiary.

Municipal Securities Rule Making Board (MSRB)

The MSRB, an agency overseen by Congress and the Securities and Exchange Commission, discusses their role and provides information on how ABLE programs work, including the protections afforded to investors and individuals.