Yes, you can roll over money from a 529 College Savings Account into a Beneficiary’s (or family member’s*) ABLE United Account without being penalized.
These types of rollovers count toward the $15,000 maximum annual contribution limit.
You can use a 529 College Savings to ABLE United Direct Rollover Form if the movement of funds is coordinated by the 529 College Savings Plan Manager and ABLE United.
You can use a 529 College Savings to ABLE United Indirect Rollover Form if the funds have been withdrawn from the 529 College Savings Plan.
*The family member must be considered a qualified “Member of the Family” as defined by the 529 College Savings Plan, which includes: biological and step-parents, aunts, uncles, siblings, children, first cousins, nieces and nephews; parents, siblings, children, nieces and nephews by marriage; legally adopted children; and half-brothers or half-sisters) of the 529 College Savings Account Beneficiary.
The ABLE to Work Act allows Beneficiaries who are employed to contribute an amount equal to their current year gross income up to $12,760 each year to their ABLE Account in addition to the annual standard contribution limit.
You can make an ABLE to Work contribution online or by using the Contribution Form.
Keep in mind that, if the Beneficiary or their employer is contributing to a defined contribution plan (such as a 401(k)), annuity plan (403(b)), or deferred compensation plan (457(b)) this calendar year, the Beneficiary is not eligible to make ABLE to Work contributions.
Here is a link to the rules and guidelines you should know about.
It depends — if you’re an eligible Beneficiary with a Representative Payee, you can open an Account for yourself. To have a Representative Payee open an Account for you, they must meet the requirements of an Authorized Legal Representative (such as a Parent, legal guardian, or power of attorney). Because the role of Representative Payee is specific and unique to Social Security benefits, it doesn’t apply to ABLE Accounts. Find out more about who can open an Account.
No. ABLE United Accounts are protected from bankruptcy.
The Stephen Beck, Jr., Achieving a Better Life Experience (ABLE) Act, a federal law enacted in December 2014, authorizes each state to establish a program that offers tax-free savings and investment options to encourage individuals with a disability and their families to save private funds to support health, independence, and quality of life. In July 2015, the state of Florida created Florida ABLE, Inc, to administer Florida’s ABLE Program, ABLE United.
Money contributed to an ABLE Account is generally disregarded when determining eligibility for federal benefit programs, such as Supplemental Security Income (SSI) and Medicaid.
Sumday is the plan manager for ABLE United and provides the online platform for the ABLE United Account. Sumday is owned by BNY Mellon, one of the world’s largest financial institutions, and its core mission is to improve lives through investing. For more information, check out the Program Description & Participation Agreement.
ABLE United is the state of Florida’s ABLE Program and is administered by Florida ABLE, Inc., a direct-support organization of the Florida Prepaid College Board. ABLE United offers a unique program designed to help Floridians with eligible disabilities save for qualified expenses and invest for the future in a tax-advantaged account ‒ without losing federal or state benefits (like SSI, SSDI, Medicaid, SNAP, TANF, HUD Assistance, Section 8, etc.).