Maryland

Program Name: Maryland ABLE (click to open an account) Phone: 1. 855.563.2253
Status: Open for Enrollment to residents of any U.S. state.
State Program Manager: Vestwell
State Account Limit: $500,000
Accepts Out Of State Residents: Yes
Rep. Payee Multiple Access: Yes. The ABLE plan may allow for different levels of account access for the owner and Authorized Legal Representative through the debit card option.
Annual Contribution Limit: $20,000 (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 $15,650 for residents of the continental U.S.; $19,550 for residents of Alaska and $17,990 for residents of Hawaii.
Program Banking Institution: The Bank of New York Mellon
Number Investment Options: 13
Program Investment Institution(s): Fidelity
Debit Prepaid Card Feature: Yes
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: Under Maryland law, an agency or instrumentality of the State of Maryland may not seek payment from an ABLE account or its proceeds for any amount of medical assistance paid for the designated beneficiary unless required by federal law. 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. $2,500 of contributions per contributor and $5,000 for joint filers, per ABLE account may be subtracted from the gross wages of the filer prior to computing Maryland taxable income for Maryland state income tax payers (with a 10 year carry forward of contributions that excess contributions).
FDIC Insured: Yes. The Stable Option has an overall exposure of 80% stable value funds and 20% FDIC insured bank deposits. The Income Option has an overall investment exposure of 10% stocks, 25% bonds, 50% stable value funds and 15% FDIC insured bank deposits. The Conservative Option has an overall investment exposure of approximately 20% stocks, 34% bonds, 35% stable value funds, and 11% FDIC insured bank deposits. The Moderate Option has an overall investment exposure of approximately 50% stocks, 40% bonds, 7% stable value funds, and 3% FDIC insured bank deposits. The Target Year Option invests in different combinations of stocks, bonds, stable value funds, and cash or cash equivalents. The allocations automatically adjust to become more conservative as the target year approaches.
ABLE Legislation:

HB431, Maryland Achieving a Better Life Experience (ABLE) Act – Establishment

Account Disclosure Document(s):

Please See Plan Disclosure Link

• 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. An annual Account Maintenance Fee of $25 is broken into quarterly installments and deducted from the account 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 $6.25.
• Are there fees or restrictions to the number of disbursements 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. $0 The ABLE plan True Link Card offers easy access to ABLE funds and tracks QDEs for the ABLE account owner or Authorized Legal Representative.
• Can I roll over my ABLE account to another ABLE program? If so, what is the fee to do so?
  Yes.
• Fee Range
  • Annual Maintenance Fee:
    An annual Account Maintenance Fee of $25 is broken into quarterly installments and deducted from the account 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 $6.25.
  • Check Fee:
    $2.50 per Paper Check Disbursement
  • Debit Card Fee:
    The ABLE plan True Link Card offers easy access to ABLE funds and tracks QDEs for the ABLE account owner or Authorized Legal Representative.
  • Investment Option Fee Range:
    

    Maryland ABLE Investment Performance

  • Statement Fee:
    Online and email statements available at no additional cost. Annual fee of $20 , charged quarterly and prorated, is charged for requests to mail paper statements and all other documents.
• Are there other characteristics unique to your program?
  

  The plan has a mobile app on both Android and IOS, ability to direct deposit payroll deductions or SSA benefits, and there is also a savings booster program.

  Can I roll my Maryland ABLE account to another plan? Yes, subject to the standard annual contribution limit LESS the contributions made to the ABLE account for the current tax year.

  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, an Authorized Legal Representative (ALR) can be appointed to a beneficiary who is not able to give consent based on the following hierarchy: Power of Attorney, conservator or legal guardianship, spouse, parent, sibling, grandparent, or a Representative Payee for the eligible individual by the Social Security Administration.

  Maryland ABLE offers direct deposit for Social Security funds for account owners who have a representative payee. There is also a savings booster feature that allows auto contributions based on defined criteria. Convenient account and True Link Prepaid card management through Vestwell and True Link mobile apps.

  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 person with the qualifying disability as the account owner/beneficiary.  If the rep payee is an organization, the account is set up with the organization as the authorized legal representative with an agent to act on behalf of the organization and the account owner/beneficiary.

  Does your plan allow for different Levels of Control for who manages spending and investments from the ABLE account? Beneficiaries or Authorized Legal Representatives can appoint one or more Authorized Users to an ABLE Account. Authorized Users can be assigned a variety of permission levels on an ABLE Account, from view-only access up to transactional access.

  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? An Authorized Legal Representative (ALR) can be appointed to a beneficiary who is not able to give consent based on the following hierarchy: Power of Attorney, conservator or legal guardianship, spouse, parent, sibling, grandparent, or a Representative Payee for the eligible individual by the Social Security Administration.

  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 will notify the Program if eligibility status changes.

  What is your plan’s policy regarding payment of funeral / burial expenses as a qualified disability expense (QDE) prior to account freeze, if available? The Program provides payments for funeral burial expenses after the death of a beneficiary per IRS regulations upon submission of receipts or bills.

  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.

Maryland ABLE (click to open an account) Phone: 1. 855.563.2253