1. The ABLE Act
What it means for You and Your Family
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2. Background on ABLE The Achieving a Better Life Experience (ABLE) Act
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3. PA ABLE Accounts
Pennsylvania signed ABLE legislation into law on April 18,
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4. Brief overview of ABLE accounts in PA
This PowerPoint is a brief overview of PA ABLE accounts
It does not take the place of contacting Dept. of Treasury for specific eligibility, tax exemptions and benefit counseling questions
PA Treasury Department
ABLE (2253)

5. Do I qualify for an ABLE Account?
Questionnaire to determine eligibility on
Individual’s disability must have occurred before age 26
Individual must essentially meet the Social Security definition of disability
An individual who is receiving SSI or SSDI and whose disability occurred before age 26 automatically qualifies for an ABLE account
Others should check with the Dept. of Treasury

6. How do I get an ABLE Account?
The PA Treasury Department implements and oversees ABLE accounts in PA
• website is
• ABLE (2253) •

7. What is the cost of opening an ABLE Account?
There is no fee to open an account
Account can be opened with initial contribution $25 or more
Annual account maintenance fee
annual fee is $60 taken from accounts quarterly ($15 per quarter).
If you select electronic delivery of quarterly statements and account activity confirmations, account maintenance fee reduced to $45 ($ per quarter)

8. Funds in ABLE Account are invested
Similar to other investment funds (retirement, stock portfolios)
Individual has choice of investment options (e.g. high, moderate, low risk)

9. ABLE Account fees There are investment and banking fees
Asset-based fees deducted from your return ranging from 0.34% to 0.38% depending on investment option selected
Checking account option provided through Fifth Third Bank
monthly service fee $2.00, waived with e-delivery of account statements or with average monthly balance of at least $250
Other typical banking charges may apply e.g. fee for out-of-network ATMs

10. Will opening an ABLE Account hurt my Social Security or Medicaid services?
ABLE account does not effect eligibility for Medicaid services or Social Security Disability (SSDI)
The first $100,000 not counted against Supplemental Security Income (SSI)
More than $100,000, SSI payments will be suspended; when your ABLE account balance falls back to $100,000 or below, your SSI payments would be reinstated

11. How much can I save in an ABLE account?
Individual, families and friends can contribute up to a TOTAL of $14,000 each year (important to direct deposit into account)
The account cap is $511,758
Once limit is reached, no additional contributions can be made while interest can still be earned

12. What can I spend my ABLE account on?
Qualified Disability Expenses (are not taxed)
Education
Housing
Transportation
Employment Training/Support
Assistive Technology/Personal Support Services
Health
Prevention/Wellness
Financial Management/Administrative
Legal Fees
Expenses For Oversight/Monitoring
Funeral/Burial Expenses

13. Documenting Qualified Disability Expenses
Dept. of Treasury will not require documentation of how your ABLE account is used
However, for tax purposes it is important that you keep records
You may owe taxes on the earnings portion of the Non-Qualified Expense withdrawals
Important to keep track of all Qualified Disability Expenses, if IRS audits your taxes, you may documentation of your Qualified Disability Expenses

14. Non-Qualified Disability Expenses
Non-Qualified Disability Expenses are taxed
The growth portion of any Non-Qualified Withdrawal is subject to federal/state income tax and additional 10% federal tax charged
Taxes are on growth portion only not entire withdrawal
Non-Qualified Withdrawal might impact your SSI or other federal and state needs-based benefits

15. How can I make withdrawals from my ABLE account?
You will be able to make withdrawals anytime:
online
by phone
Using Fifth Third Bank debit card or checks (if applicable)
or with a Withdrawal Request form

16. What happens to the account when the person passes away?
Account can be used for outstanding Qualified Disability Expenses incl. funeral and burial expenses
Under proposed Internal Revenue Service (IRS) regulations, when Beneficiary dies, the ABLE account becomes part of Beneficiary’s estate
States asked IRS to consider other options (PA law allows transfer to sibling, if eligible)
When assets transfer to estate, any growth on contributions will be subject to income tax

17. Is there a Medical Assistance/Medicaid payback?
Federal law allows states to file claims for Medical Assistance (Medicaid) provided during the time the beneficiary had an ABLE account
In PA, DHS may seek repayment from the estate
See Dept. of Treasury for conditions

18. Earnings are not taxed while growing in the account
Tax Benefits
Earnings are not taxed while growing in the account
Earnings are not taxed when withdrawn and used for “qualified disability expenses”

19. Work/ABLE/SSI
Work income is treated as income for some government benefits, including Supplemental Security Income (SSI), even if it is directly deposited into an ABLE account, and, therefore, may affect eligibility for those benefits.

20. Work/ABLE/SSI Resources for benefit counseling:
People who use Social Security and Medicaid have to pay attention to income from work
Resources for benefit counseling:
AHEDD
Disability Rights of Pennsylvania
Goodwill

21. ABLE Accounts and Special Needs Trusts
Special Needs Trust: holds money of parents/grandparents, for the benefit of a person with a disability
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22. ABLE Accounts and Special Needs Trusts
Special Needs Trusts can be first-party or third-party; individual or pooled
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23. ABLE Accounts and Special Needs Trusts
An individual trust is usually opened with help from a lawyer and managed by one or multiple trustees
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24. ABLE Accounts and Special Needs Trusts
A pooled trust is managed by a non-profit organization
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25. ABLE Accounts and Special Needs Trusts
Special needs trust are good for:
People who have a large sum of money (like an inheritance) that needs to be deposited
People who want someone else to navigate spending money
People who are not as concerned with how much a special needs trust costs to open
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26. ABLE Accounts and Special Needs Trusts
ABLE Accounts are the only account that does not tax earnings
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27. ABLE Accounts and Special Needs Trusts
ABLE accounts are good for:
People who want to save money they make from working
People who want more control of their money
People looking for a less expensive option than a special needs trust
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28. The Arc of Pennsylvania
QUESTIONS?
Maureen Cronin
Executive Director
The Arc of Pennsylvania
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