ABLE Account Decision Guide Series
Finding the Funds to Save in an ABLE Account
An ABLE account receives contributions from the ABLE account owner and/or from other persons. (“Persons” is defined as trust, estate, partnership, association, company, or corporation.) A monetary contribution is initially needed to open the ABLE account and then it is recommended, but not required, that over time, additional contributions/deposits be made to add to or to replenish the account following distributions for Qualified Disability Expenses (QDEs). The contributions are subject to the annual limit (by the account owner, his or her parents, other family members, and/or by the trustee of a special needs trust (SNT) (trust defined as person by the IRS) or a pooled trust. Contributions can also be made through permitted rollovers from other ABLE accounts or 529 college savings accounts.
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To begin, choose the a source for the contribution:
- Rollovers from an “ABLE account to a Qualified Family Member”
- Rollovers from a “Member of the Family’s” 529 College Savings Account
- Rollover from Account Owner’s Current ABLE program to another ABLE Program (Program to Program Transfer/Rollover)
- Earnings of the Account Owner
- ABLE Account Owner’s Tax Refund
- SSI or SSDI Lump Sum Retroactive Payment (or Any Unused Portion of a Monthly Payment) if there is no representative payee
- Other Monthly Payments or Lump Sums an ABLE Account Owner Receives
- Contributions from Family and Friends
- Contributions from an Employer
- Contributions from a Special Needs Trust or a Pooled Trust
Note: Our ABLE Decision Guide Series is designed as an aid to decision making as it relates to establishing and using an ABLE account. This document does not cover every possible issue related to the topic and is not a substitute to more in-depth analysis that may be required in some cases.