Maryland

Program Name: Maryland ABLE (click to open an account)
Status: Open for Enrollment to residents of any U.S. state.
State Program Manager: Sumday Administration, LLC
State Account Limit: $500,000
Accepts Out Of State Residents: Yes
Annual Contribution Limit: $15,000
ABLE To Work Act Contribution: Over and above the standard Annual Contribution Limit (i.e. $15,000 for 2021), a working Beneficiary is allowed to contribute an additional amount up to the lessor of: (i) the Beneficiary’s compensation for the current tax year; or (ii) an amount equal to the Federal Poverty Level for a one person household as determined for the calendar year preceding the tax year in which contributions are made ($12,760 for contributions made in 2021). Up to an additional $15,950 for residents of Alaska and up to $14,680 for residents of Hawaii.
Program Banking Institution: The Bank of New York Mellon
Number Investment Options: 4
Program Investment Institution(s): Vanguard
Debit Card Or Prepaid Card: Yes
Withdrawal Hold Rules: Yes.   Initial contributions received from a Beneficiary or ALR following a new enrollment will be subject to a twenty (20) Business Day holding period before funds are available for withdrawal. After the initial contribution, subsequent contributions received from a Beneficiary or ALR will be subject to a five (5) Business Day holding period before the funds are available for withdrawal. Contributions made as a result of a gift from a third party will be subject to a twenty (20) Business Day holding period before the funds are available for withdrawal. A change in mailing address will result in a thirty (30) calendar day holding period before physical checks can be requested and mailed to the new address of record. A change or addition in bank account will result in a thirty (30) calendar day holding period before Electronic Fund Transfers (EFT) can be requested and sent to the new linked bank account.
Medicaid Estate Recovery Status: Generally, in accordance with Section 529A, following the death of the Beneficiary, any state may file a claim against the ABLE Account for the amount of the total medical assistance paid for the Beneficiary under that state’s Medicaid Program after the establishment of the account (or any ABLE Account from which amounts were rolled to the ABLE Account). Unless required by federal law, a Maryland agency may not seek payment from an ABLE account for any amount of medical assistance provided by or through the Maryland agency for the Beneficiary.
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.
ABLE Legislation:

The Maryland ABLE Act (2016 Maryland Laws Ch. 39 (H.B. 431) was signed into law by Governor Hogan on April 12, 2016, enabling Maryland to begin building an ABLE program. The Maryland ABLE program is implemented by an independent state agency, Maryland 529.

Account Disclosure Document(s):

Please See Plan Disclosure Link


Additional Information:

 

 

Program at a Glance

  • 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. $10.
  • Is there an annual set fee to maintain the account? If so, how much?
    Yes. The annual Account Maintenance Fee of $35 is billed in quarterly installments of $8.75 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 have an open account you will be billed $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. $1.25 per month.
  • Can I roll over my ABLE account to another ABLE program? If so, what is the fee to do so?
    Yes. $50.
  • 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.
    • Check Fee:
      $2.50 per check
    • Debit Card Fee:
      $1.25 a month
    • Investment Option Fee Range:

      Please See Plan Disclosure Documents

    • Statement Fee:
      $10 per year.
  • 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.

     

Maryland ABLE (click to open an account)