Michigan

Program Name: MiABLE (click to open an account) Phone: (844) 656-7225
Status: Open for Enrollment
State Program Manager: Ascensus College Savings Recordkeeping Services, LLC
State Account Limit: $500,000
Accepts Out Of State Residents: Yes
Annual Contribution Limit: $17,000 (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 his or her ABLE Account. The additional amount that may be contributed 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 the less. This is up to $13,590 for residents of the continental U.S.; $16,990 for residents of Alaska and $15,630 for residents of Hawaii.
Program Banking Institution: Fifth Third Bank, NA
Number Investment Options: 7
Program Investment Institution(s): BlackRock, Schwab, and Vanguard provide the mutual funds and/or ETFs in the Target Risk Investment Options. Sallie Mae Bank provides the high yield savings account in the applicable Target Risk Investment Options. Fifth Third Bank, N.A., provides the Checking Account Option.
Debit Card Or Prepaid Card: Yes
Withdrawal Hold Rules: Yes.   Contributions made by check, recurring contribution, or EFT to the Checking Account Option will be available for withdrawal after six business days. Contributions to the Target Risk Investment Options made by check, recurring contribution, or EFT will be available for withdrawal after 5 business days. There will be a hold of 10 business days on withdrawal requests when there is a change of address.
Medicaid Estate Recovery Status: Upon the death of a beneficiary, funds remaining in an ABLE account can be used by the decedent’s estate to pay for outstanding Qualified Disability Expense, including funeral and burial costs. Funds remaining after these payments will be transferred to the decedent’s estate and may be subject to “claw back” under applicable Medicaid laws and regulations.  Michigan Medicaid has never made a claim to ABLE accounts after a beneficiary has passed away.
State Income Tax Deduction: Yes. Michigan taxpayers can deduct $5,000.00 if filling as individual and $10,000.00 if filing jointly. This deduction only applies to contributions made to MiABLE Accounts. Consult with a Tax Preparer to discuss your tax matters.
FDIC Insured: Yes. The Fifth Third Bank, NA Checking Account Option is FDIC insured up to $250,000, subject to certain restrictions.
ABLE Legislation:

Michigan ABLE Legislation

 

Account Disclosure Document(s):

Account Disclosure Document and Agreement


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. $25.
  • Is there an annual set fee to maintain the account? If so, how much?
    Yes. $45 annually, paid $11.25 quarterly
  • Are there fees or restrictions to the number of disbursement you are allowed? If so, what are they?
    Yes. No restriction on the number of disbursements, however there is a $20 disbursement fee for checks, $15 fee for Wires, and no fee for ACH.
  • Is there a “debit card/purchasing card” available with the program? If so, what is the added cost?
    Yes. A Fifth Third Bank, NA Checking Account Option is available with a real-time debit card and no overdraft fees. The $2.00 monthly fee will be waived for Accounts with an average daily balance of greater than $250, or if enrolled in E-delivery.
  • 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:
      The Annual Account Maintenance Fee is $58.00, reduced to $33.00 for E-delivery of statements and confirmations for in-state and out-of-state Account Owners.
    • Check Fee:
      Checkbooks containing 40 checks may be purchased for $6.00 per checkbook. Once the checking account balance reaches at least $25.00, payment for checkbooks may be made from funds in the account.
    • Debit Card Fee:
      A Fifth Third Bank, NA Checking Account Option is available with a real-time debit card and no overdraft fees. The $2.00 monthly fee will be waived for Accounts with an average daily balance of greater than $250, or if enrolled in E-delivery
    • Statement Fee:
      Statements available online; no fee
    • ABLE Account Transfer Fee:
      $0
    • Withdrawal Transaction Fee:
      No transaction fee, fee for disbursements, $20 for check, $15 for Wire, no fee for ACH.
  • Are there other characteristics unique to your program?

    Michigan is a member of the National ABLE Alliance, a bi-partisan consortium of states and the District of Columbia. MiABLE Account Owners benefit from powerful oversight, high-quality plan features and low-cost, strong-performing investments.  Account Owners have access to an exclusive, fully integrated Fifth Third, FDIC-insured Checking Account Option, which is available with a real-time debit card and check-writing capability.  The MiABLE plan is available to both in-state and out-of-state residents, and Michigan taxpayers who contribute to MiABLE Accounts can take a deduction from state income taxes.  Anyone can contribute to an MiABLE Account, and the easy-to-use Ugift feature makes gift contributions easy.

    See ABLE Plan Disclosure Document

MiABLE (click to open an account) Phone: (844) 656-7225