ABLE Account Decision Guide Series
Understanding ABLE Account Savings and Public Benefits
The IRS law, regulations, and policy governing ABLE accounts allow distributions to cover the cost of “qualified disability expenses” (QDEs).
See ABLE Case Summary 4: ABLE Accounts and Qualified Disability Expenses: Expenses That Do or Do Not Meet QDE Criteria, https://www.ablenrc.org/wp-content/uploads/2019/07/4-ABLE-and-Qualified-Disability-Expenses_0.pdf
. QDEs are expenses made for the benefit of the designated beneficiary and related to his or her disability, including, but not limited to: education; housing; transportation; employment training and support; assistive technology and related services; health; prevention and wellness; financial management and administrative services; legal fees; expenses for ABLE account oversight and monitoring; funeral and burial; and, basic living expenses. Subsequent to the publication of the referenced case summary, the Social Security Administration (SSA) has clarified that food is considered a QDE.
Does ABLE distribution meet QDE criteria?
YES, meets QDE criteria NO, does not meet QDE criteria
Note: Our ABLE Decision Guide Series is designed as an aid to decision making as it relates to establishing and using an ABLE account. This document does not cover every possible issue related to the topic and is not a substitute to more in-depth analysis that may be required in some cases.