Alabama
Program Name:
Alabama ABLE Savings Plan (click to open an account) Phone number: 1-844-711-2253
Status: Open for Enrollment
ABLE Plan Flyer: https://www.alabamaable.gov/contact-us
State Program Manager: Vestwell State Savings
State Account Limit: $475,000
Accepts Out Of State Residents: Yes
Rep. Payee Multiple Access:
Yes. Call the ABLE plan to discuss the option to enroll multiple account owners and manage the accounts through the Organizational ALR Program.
Annual Contribution Limit: $19,000 (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 $15,060 for residents of the continental U.S.; $18,810 for residents of Alaska and $17,310 for residents of Hawaii.
Program Banking Institution: BNY Mellon
Number Investment Options: 4
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.
Initial and subsequent contributions received from a Beneficiary or ALR following a new enrollment will be held for five (5) Business Days before funds are available for withdrawal. Contributions made as a gift from a third party may be held for up to 10 Business Days to ensure that the funds are received before the funds are available for withdrawal.
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 $250,000.00
ABLE Legislation:
Alabama Senate Bill 226 implements the federal ABLE act in Alabama
Account Disclosure Document(s):Please See Plan Disclosure Document
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. During the opening procedure, (online or paper application) this relationship is established via the answer to the hierarchy question included.
Does your plan allow for proper account titling for a representative payee? Yes, if the rep payee is an individual, they set the account up with themselves as the administrator and the disabled person as the account owner. If the rep payee is an entity, the account is set up with the entity as the administrator with an agent to act on behalf of the entity and the disabled person as the account owner.
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 owner/disabled person, our staff requests a copy of the death certificate. Once received, we inquire if there are outstanding medical or funeral final expenses. If so, payment is made to cover those expenses. If there are funds left above those final expenses, a check is requested payable to the estate of the account owner/disabled person.
Does your plan allow for naming any beneficiary on the account? A successor designated beneficiary may be listed on an ABLE Account. This individual must be a sibling, stepsibling, or half-sibling of the current owner and must also be an Eligible Individual. Adding a successor designated beneficiary can be done online during enrollment or under account management for an existing account, or by submitting the Add/Edit/Remove Successor Owner Form. The designation must be made before the designated beneficiary’s death.
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. -
Check Fee:
$2.50 per check. -
Debit Card Fee:
$5.00 per month -
Investment Option Fee Range:
-
Statement Fee:
$20.00 annually for paper statement. Electronic statements are provided at no charge. -
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.
Does your plan allow for different Levels of Control for who manages spending and investments from the ABLE account? If the ABLE account holder needs help managing his or her account and is able to consent, an Authorized Legal Representative (ALR) can be selected. If the ABLE account holder is not able to consent, an ALR can manage the account if they have Power of Attorney, conservator or legal guardianship, spouse, parent, sibling, grandparent, or a Representative Payee for the eligible individual by the Social Security Administration.
Where can I find the ABLE Plan’s investment performance information? https://www.alabamaable.gov/historical-performance
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.