Maryland ABLE (click to open an account)
Status: Open for Enrollment to residents of any U.S. state.
State Program Manager: Sumday, LLC
State Account Limit: $500,000
Accepts Out Of State Residents: Yes
Annual Contribution Limit: $15,000
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 Account. The additional amount that may be contributed is an amount equal to the Account Owner’s compensation or equal to the poverty line for a one-person household for the prior calendar year, whichever amount is the less: up to $12,490 for residents of the 48 contiguous states; $15,600 for Alaska; or $14,380 for residents of Hawaii.
Number Investment Options: 4
Program Investment Institution(s): Vanguard
Debit Card Or Prepaid Card: Yes
Withdrawal Hold Rules: Yes. Up to a maximum of 7 business day hold after a contribution has been received and accepted by the Program for funds to be available for withdrawal.
Medicaid Estate Recovery Status: FOR the purpose of authorizing money and assets in an ABLE account to be transferred, on the death of a designated beneficiary, to a certain estate or a certain ABLE account for an eligible individual, unless prohibited by federal law; prohibiting the State, unless required by federal law, from seeking payment from an ABLE account or its proceeds for certain medical benefits paid for the designated beneficiary; and generally relating to the Maryland ABLE Program. UNLESS PROHIBITED BY FEDERAL LAW, ON THE DEATH OF A DESIGNATED BENEFICIARY, MONEY AND ASSETS IN AN ABLE ACCOUNT MAY BE TRANSFERRED TO: (1) THE ESTATE OF THE DESIGNATED BENEFICIARY; OR (2) AN ABLE ACCOUNT FOR ANOTHER ELIGIBLE INDIVIDUAL SPECIFIED BY THE DESIGNATED BENEFICIARY OR THE ESTATE OF THE DESIGNATED BENEFICIARY. (B) UNLESS REQUIRED BY FEDERAL LAW, AN AGENCY OR INSTRUMENTALITY OF THE STATE MAY NOT SEEK PAYMENT UNDER § 529A(F) OF THE INTERNAL REVENUE CODE FROM AN ABLE ACCOUNT OR ITS PROCEEDS FOR ANY AMOUNT OF MEDICAL ASSISTANCE PAID FOR THE DESIGNATED BENEFICIARY. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1 October 1, 2018.
State Income Tax Deduction: Yes. $2,500 of contributions per contributor and $5,000 for joint filers, per ABLE account are deductible in computing Maryland taxable income for Maryland state income tax payers (with a 10 year carry forward of excess contributions).
FDIC Insured: Yes. Monies placed in the Maryland ABLE Cash Option are insured under the guidelines of the Federal Deposit Insurance Company (“FDIC”). The Cash Option offers FDIC insurance up to $250,000, subject to certain restrictions.
Maryland ABLE offers both online and paper enrollment. Account holders can also call and make an appointment to visit our offices for assistance to enroll during normal business hours.
Program at a Glance
Is there an initial minimum contribution requirement to open an ABLE account? If so, how much?
Is there a required minimum contribution to your account? If so, what is the amount?
Is there an annual set fee to maintain the account? If so, how much?
Yes. An annual Account Maintenance Fee of $35 billed at the end of each quarter. The amount billed will be prorated for the calendar quarter during which you open your ABLE Account. Each quarter after that you will be billed $8.75.
Are there fees or restrictions to the number of disbursement you are allowed? If so, what are they?
Is there a “debit card/purchasing card” available with the program? If so, what is the added cost?
Yes. $1.25 per month
Can I roll over my ABLE account to another ABLE program? If so, what is the fee to do so?
- Fee Range
Annual Maintenance Fee:
An annual Account Maintenance Fee of $35 billed at the end of each quarter. The amount billed will be prorated for the calendar quarter during which you open your ABLE Account. Each quarter after that you will be billed $8.75.
Debit Card Fee:
Investment Option Fee Range:
None if electronically $10 per year if paper statements are chosen.
- Annual Maintenance Fee:
Are there other characteristics unique to your program?
Maryland ABLE has included in its rollover and gifting process a step for approval and limiting by the Beneficiary or ALR to ensure that beneficiaries that have savings goals in order to maintain benefits, based on assets outside of the ABLE account, can be completed throughout the calendar year.