Louisiana
Program Name:
Louisiana ABLE Account Program (click to open an account) Phone: 1-800-259-5626 Ext #2
Status: Open for Enrollment
State Program Manager: Louisiana Office of Student Financial Assistance (LAOSFA) and Louisiana Tuition Trust Authority (LATTA)
State Account Limit: $500,000
Accepts Out Of State Residents: No
Annual Contribution Limit: $19,000 (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 their ABLE Account. The additional amount that may be deposited is an amount equal to the Account Owner’s employment income or equal to the poverty line for a one-person household for the prior calendar year, whichever amount is the less. This is up to $15,060 for residents of Louisiana.
Program Banking Institution: Chase Bank
Number Investment Options: 9
Program Investment Institution(s): Vanguard Inc: “ABLE accounts will be subject to investment risks, including loss of the principal amount invested.”
Debit Prepaid Card Feature: No
Withdrawal Hold Rules: Yes.
3 business day float on non-guaranteed funds.
Medicaid Estate Recovery Status: Any funds remaining in the account after all Qualified Disability Expenses have been paid are subject to a legal claim by the state in an amount up to “the amount equal to the total medical assistance paid for the designated beneficiary after the establishment of the account, net of any premiums paid from the account or paid by or on behalf of the beneficiary to a Medicaid BuyIn program under any State Medicaid plan established under title XIX of the Social Security Act, shall be distributed to such State upon filing of a claim for payment by such State.” (Internal Revenue Code Section 529a.)
State Income Tax Deduction: No.
FDIC Insured: No.
ABLE Legislation:
HOUSE BILL NO. 598 ACT NO. 411
HOUSE BILL NO. 833 ACT NO. 93
HOUSE BILL 598 Legislative Summary
HOUSE BILL 833 Legislative Summary
Account Disclosure Document(s):
The ABLE Act was passed on 5/16/14 as Act 93 (HB 833), prior to the federal passage of the ABLE Act in December 2014. HB 598 was signed into law as Act 411 on 7/1/15 to amend Act 93.
Do you have a policy for opening an account for those who have term guardianship, personal guardianship or financial guardianship/conservator? Yes During the opening procedure, (online or paper application) this relationship is established via the answer to the hierarchy question included.
Does your plan allow for proper account titling for a representative payee (see examples in the SSA webpage: Payee and ABLE accounts )? if the rep payee is an individual, they set the account up with themselves as the administrator and the disabled person as the account owner. If the rep payee is an entity, the account is set up with the entity as the administrator with an agent to act on behalf of the entity and the disabled person as the account owner.
What is your plan’s policy regarding payment of funeral / burial expenses as a qualified disability expense (QDE) prior to account freeze, if available? The above is true for those that passed prior to 6/6/23. If after, ACT 96 will be used. The administrator can name either to disabled sibling to receive their ABLE Savings Account proceeds to their ABLE Savings account or a check payable to the estate of the owner/beneficiary. If no election is made, final expenses are paid first, then the balance to the Louisiana Disability Services Fund.