Texas

Program Name: Texas ABLE Program (click to open an account)
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: $15,000 (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 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 lesser: up to $12,760 for residents of the 48 contiguous states; $15,950 for Alaska; or $14,680 for residents of Hawaii.
Program Banking Institution: Bank of the West
Number Investment Options: 4
Program Investment Institution(s): Vanguard, PIMCO, Eaton Vance, and an omnibus Bank Savings Account held by Bank of the West
Debit Card Or Prepaid Card: Yes
Withdrawal Hold Rules: Yes.   7 business days following receipt of contributions by check if that contribution is needed to fund the withdrawal; 5 business days following receipt of contributions electronically if that contribution is needed to fund the withdrawal. Also, to protect the account owner, there is a 10 business day hold on withdrawals following a change of address for the beneficiary or the authorized legal representative and a 15 business day hold following a change in the authorized legal representative.
Medicaid Estate Recovery Status: In the event the individual with the disability were to pass away, the state of Texas has the authority to ask for the funds paid by Medicaid for the beneficiary during the time that the ABLE account was open - but only after outstanding qualified disability expenses (including funeral and burial) are paid first.
State Income Tax Deduction: No. Texas does not have a state income tax.
FDIC Insured: Yes. The FDIC Bank savings option through Bank of the West.
ABLE Legislation:

Texas Education Code, Chapter 54, Subchapter J

Account Disclosure Document(s):

Please See Plan Disclosure Document


Additional Information:

Self-attestation enrollment process. To protect rights of the beneficiary, proof is required of legal authority for someone else to establish an account on behalf of a beneficiary. In addition to the federal benefits, Texas ABLE account balances, earnings, and withdrawals disregarded for purposes of determining eligibility to receive certain benefits provided by the State of Texas.

 

Program at a Glance

  • Is there an initial minimum contribution requirement to open an ABLE account? If so, how much?
    Yes. $50.
  • 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. $48 per year payable at $4 per month.
  • Are there fees or restrictions to the number of disbursement you are allowed? If so, what are they?
    Yes. Two free ACH withdrawals per month, $1 for each additional ACH withdrawal. $5 for each withdrawal by check.
  • Is there a “debit card/purchasing card” available with the program? If so, what is the added cost?
    Yes. There is no cost to enroll in the Focus Card program. The Texas ABLE® Program allows two free ACH withdrawals per month and charges $1 for each additional ACH withdrawal. Making a withdrawal to the Focus Card is considered an ACH withdrawal.
  • Can I roll over my ABLE account to another ABLE program? If so, what is the fee to do so?
    Yes. $0.
  • Fee Range
    • Annual Maintenance Fee:
      $48 per year payable at $4 per month.
    • Check Fee:
      $5 per check processing fee.
    • Debit Card Fee:
      The Texas ABLE® Program will charge $1.00 for each withdrawal by ACH in excess of two (2) per month from your Texas ABLE account. Making a withdrawal to the Focus Card is considered an ACH withdrawal.
    • Investment Option Fee Range:

      Please See Plan Disclosure Document

    • Statement Fee:
      No charge for electronic delivery of statements; $10 per year fee for paper delivery of program documents; however, tax documents are delivered via mail at $0 cost for either option.
    • ABLE Account Transfer Fee:
      $0
    • Withdrawal Transaction Fee:
      Two free ACH withdrawals per month, $1 for each additional ACH withdrawal. $5 for each withdrawal by check.
  • Are there other characteristics unique to your program?

    Texas ABLE offers online account management, a robust gifting feature and payroll deduction. There is no enrollment fee, and the program has a low minimum contribution limit. Texas ABLE is established and maintained by the Texas Prepaid Higher Education Tuition Board with assistance from the Texas Comptroller of Public Accounts. ABLE assets are pooled with 529 assets to maximize earnings potential. Aon Hewitt Investment Consulting serves as investment consultant to the Board in managing program assets.

Texas ABLE Program (click to open an account)