Texas ABLE Program (click to open an account) Phone number: 844-489-2253
Status: Open for Enrollment
State Program Manager: Orion Advisor Solutions, Inc.
State Account Limit: $500,000
Accepts Out Of State Residents: No
Annual Contribution Limit: $16,000 (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 earnings 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 $12,880 for residents of Texas.
Program Banking Institution: Bank of the West
Number Investment Options: 5
Program Investment Institution(s): Vanguard, PIMCO and Eaton Vance
Debit Card Or Prepaid Card: Yes
Withdrawal Hold Rules: Yes. The Program reserves the right not to allow withdrawals of funds for up to: 7 business days following contributions by check if that contribution is needed to fund the withdrawal; 5 business days following contributions by electronic funds transfer if that contribution is needed to fund the withdrawal; 10 business days following a change of address; 15 business days following a change of Authorized Legal Representative
Medicaid Estate Recovery Status: Upon the death of the beneficiary, a state may be required to file a claim for the amount of the total medical assistance paid for the beneficiary under the state’s Medicaid plan after the establishment of a program account (or any ABLE account from which amounts were rolled or transferred to the program account). The amount of the claim is to be paid only after the payment of all outstanding payments due for the qualified disability expenses of the beneficiary, including any funeral and burial expenses, and is to be reduced by the amount of all premiums paid by or on behalf of the beneficiary to a Medicaid Buy-In program under that state’s Medicaid plan.
State Income Tax Deduction: No. Texas does not have a state income tax.
FDIC Insured: Yes. Contributions to or earnings on the Bank Savings Account Option are insured by the FDIC on a per-participant, pass-through basis up to the maximum amount set by federal law, currently $250,000. Funds held on the debit card are also FDIC insured up to $250,000.
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? If the beneficiary is a minor, or has a legal guardian or other fiduciary appointed to manage the beneficiary’s financial affairs, the parent, legal guardian, or other fiduciary may serve as the Authorized Legal Representative and enter into the Savings Trust Agreement with the Program.
Does your plan allow for proper account titling for a representative payee? Currently the system allows for a parent, legal guardian or other fiduciary (for example, a trustee or an agent acting under a power of attorney for the designated beneficiary). System functionality will allow a spouse, sibling, grandparent or
representative payee to open an account as an Authorized Legal Representative.
What is your plan’s policy regarding payment of funeral / burial expenses as a qualified disability expense (QDE) prior to account freeze, if available? Funeral and burial expenses can be paid prior to account freeze.
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. $42 per year payable at $3.50 per month.
Are there fees or restrictions to the number of disbursement you are allowed? If so, what are they?
Yes. $5 charge for each withdrawal by check; $1 charge for each withdrawal by ACH in excess of 2 per month.
Is there a “debit card/purchasing card” available with the program? If so, what is the added cost?
Yes. Loading funds onto the debit card is treated as an ACH withdrawal; each withdrawal in excess of 2 per month is subject to a $1 ACH processing fee. There are no monthly or purchase fees. After 90 days with no transactions, there is a $2 per month inactivity fee. See our website for other fees that might apply.
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:
$42 per year payable at $3.50 per month.
$5 charge per withdrawal by check.
Debit Card Fee:
The Program will charge $1.00 for each withdrawal by ACH in excess of two per month from your Texas ABLE account. Making a withdrawal to the Focus Card is considered an ACH withdrawal.
Investment Option Fee Range:
There is no fee for electronic delivery of documents; there is a $10 annual fee for printed documents.
ABLE Account Transfer Fee:
Withdrawal Transaction Fee:
$5 charge for each withdrawal by check; $1 charge for each withdrawal by ACH in excess of 2 per month.
- Annual Maintenance Fee:
Are there other characteristics unique to your program?
Texas ABLE Program grassroots staff are available for outreach opportunities including virtual or in-person presentations and webinars. Please call 512-475-5331 or email us at TexasABLE@cpa.texas.gov.
Where can I find the ABLE Plan’s investment performance information? https://www.texasable.org/investments/#investment-performance
Description of plan’s Recertification of ABLE Eligibility Policy: The designated beneficiary, or the Authorized Legal Representative if one is named, is responsible for notifying the Program if the designated beneficiary is no longer an eligible individual. The designated beneficiary, or the Authorized Legal Representative, if one is named, is also responsible for notifying the Program if the beneficiary subsequently re-qualifies as an eligible individual. Notification may be provided online at TexasABLE.org.