An ABLE United Account offers Floridians with qualifying disabilities a tax-free way to save while maintaining government benefits. Florida’s ABLE program was established under Section 529 of Internal Revenue Code (529A).
The State of Florida created Florida ABLE, Inc. (d/b/a ABLE United), a registered not-for-profit and direct support organization of the Florida Prepaid College Board to administer the ABLE United Program.
The ABLE United beneficiary must be a Florida resident at the time of application and have a qualifying disability with onset prior to age 26. To find out if someone qualifies for an ABLE United Account, please complete the eligibility quiz.
Generally, funds in (or withdrawn from) an ABLE United Account are disregarded when determining eligibility for federal means-tested programs like Supplemental Security Income (SSI), Medicaid, HUD occupancy and SNAP.
Funds in or paid out of the ABLE Account are “not liable to attachment, levy, garnishment, or legal process” and are exempt assets in federal bankruptcies.
Qualified Disability Expenses
If the money in an ABLE United Account is spent on one of the following Qualified Disability Expenses, as defined by federal law, the earnings on the money withdrawn are tax-free.
In general, Qualified Disability Expenses include, but are not limited to, the following types of expenses:
- Employment training and support
- Assistive technology and related services
- Prevention and wellness
- Financial management and administrative services
- Legal fees
- Funeral and burial
- Basic living expenses
How It Works
Open an account: It’s free to enroll and there is no monthly maintenance fee – enrollment and account management are completed online. The individual with a disability owns the Account, but an Authorized Legal Representative may open and oversee the account. Only one Account is allowed per individual with a disability.
Contribute: Get started saving with as little as $25. Save up to $15,000 per year – individually or with the help of family and friends. Additionally, with ABLE to Work, the beneficiary can save more than $15,000 and take advantage of Saver’s Credit if working and not saving for retirement. It’s important to note that individuals can save up to $100,000 before funds in the ABLE United Account will be considered as a resource for SSI. The account can grow up to $418,000 before contributions are no longer accepted.
Choose investments: Choose from three predesigned portfolios (Conservative, Moderate, or Growth) or five individual funds (FDIC Savings Fund, Money Market, U.S. Bond, U.S. Stock or International Stock) to build a portfolio that meets your savings goals.
Withdraw: Individuals can easily access funds online by requesting an electronic transfer to a linked bank account. Choose which fund to withdraw from. An optional prepaid card is coming soon for greater flexibility.
Special Needs Trust (SNT) and ABLE Accounts
An ABLE United Account can work well in conjunction with a third-party special needs trust. The trust can be used to fund the ABLE Account, allowing for convenient access to the funds. The ABLE Account provides additional flexibility to pay for a variety of expenditures, including housing-related expenses, without impacting SSI benefits.
To request free ABLE United collateral for your office, please submit your order here.