Michigan
Program Name:
MiABLE (click to open an account) Phone: (844) 656-7225
Status: Open for Enrollment
State Program Manager: Ascensus College Savings Recordkeeping Services, LLC
State Account Limit: $500,000
Accepts Out Of State Residents: Yes
Annual Contribution Limit: $18,000 (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 his or her ABLE Account. The additional amount that may be contributed 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 $14,580 for residents of the continental U.S.; $18,210 for residents of Alaska and $16,770 for residents of Hawaii.
Program Banking Institution: Fifth Third Bank
Number Investment Options: 7
Program Investment Institution(s): The Investment Options include 6 Target Risk Options with Underlying Investments managed by BlackRock, Schwab, Vanguard, Capital Group-American Funds, and Sallie Mae Bank. Fifth Third Bank provides the 7th Investment Option, a Checking Account Option, that invests 100% of its assets in an FDIC-insured checking account.
Debit Card Or Prepaid Card: Yes
Withdrawal Hold Rules: Yes.
Contributions to the Target Risk Options will be held for 5 or 6 business days before becoming available for withdrawal and contributions to the Checking Account Option will be held for 6 or 7 business days before becoming available for withdrawal.
Medicaid Estate Recovery Status: Upon the death of a beneficiary, funds remaining in an ABLE account can be used by the decedent’s estate to pay for outstanding Qualified Disability Expense, including funeral and burial costs. Funds remaining after these payments will be transferred to the decedent’s estate and may be subject to “claw back” under applicable Medicaid laws and regulations. Michigan Medicaid has never made a claim to ABLE accounts after a beneficiary has passed away.
State Income Tax Deduction: Yes. Michigan taxpayers can deduct $5,000.00 if filling as individual and $10,000.00 if filing jointly. This deduction only applies to contributions made to MiABLE Accounts. Consult with a Tax Preparer to discuss your tax matters.
FDIC Insured: Yes. The Checking Account Investment Option invests 100% of its assets in a checking account held at Fifth Third Bank, which offers FDIC insurance up to $250,000, subject to certain restrictions. The ABLE Account cannot be opened at a Fifth Third Bank branch. Visit the Plan’s website to open the ABLE Account.
ABLE Legislation:
Account Disclosure Document(s):
Program at a Glance
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Is there an initial minimum contribution requirement to open an ABLE account? If so, how much?
Yes. $25. -
Is there a required minimum contribution to your account? If so, what is the amount?
Yes. $25. -
Is there an annual set fee to maintain the account? If so, how much?
Yes. Annual Account Maintenance Fee (assessed quarterly). $56.00 for paper delivery of confirmations and statements ($14.00/quarter); $31.00 for e-delivery of confirmation and statement notifications ($7.75/quarter). The Plan may reduce this fee by an additional $5.00 per year if the Account Owner or Authorized Individual is a resident of Michigan. -
Are there fees or restrictions to the number of disbursement you are allowed? If so, what are they?
Yes. No restriction on the number of disbursements, however there is a $20 disbursement fee for checks, $15 fee for Wires, and no fee for ACH. -
Is there a “debit card/purchasing card” available with the program? If so, what is the added cost?
Yes. A Fifth Third Bank Checking Account Option is available with a real-time debit card and no overdraft fees. The $2.00 monthly fee will be waived for Accounts with an average daily balance greater than $250, or if enrolled in E-delivery -
Can I roll over my ABLE account to another ABLE program? If so, what is the fee to do so?
Yes. - Fee Range
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Annual Maintenance Fee:
Annual Account Maintenance Fee (assessed quarterly). $56.00 for paper delivery of confirmations and statements ($14.00/quarter); $31.00 for e-delivery of confirmation and statement notifications ($7.75/quarter). The Plan may reduce this fee by an additional $5.00 per year if the Account Owner or Authorized Individual is a resident of Michigan. -
Check Fee:
Checks may be purchased for $6.00 per checkbook. Once the checking account balance reaches at least $25.00, payment for checkbooks may be made from funds in the Account. -
Debit Card Fee:
A Fifth Third Bank, NA Checking Account Option is available with a real-time debit card and no overdraft fees. The $2.00 monthly fee will be waived for Accounts with an average daily balance of greater than $250, or if enrolled in E-delivery -
Statement Fee:
Annual Account Maintenance Fee (assessed quarterly). $56.00 for paper delivery of confirmations and statements ($14.00/quarter); $31.00 for e-delivery of confirmation and statement notifications ($7.75/quarter). The Plan may reduce this fee by an additional $5.00 per year if the Account Owner or Authorized Individual is a resident of Michigan. -
ABLE Account Transfer Fee:
$0 -
Withdrawal Transaction Fee:
No transaction fee, fee for disbursements, $20 for check, $15 for Wire, no fee for ACH.
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Annual Maintenance Fee:
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Are there other characteristics unique to your program?
Michigan is a member of the National ABLE Alliance, a bi-partisan consortium of states and the District of Columbia. Michigan savers and investors can choose among 7 Investment Options, including a fully integrated Fifth Third, FDIC-insured Checking Account Option, which is available with a real-time debit card and check-writing capability. Account Owners can take advantage of lower fees by choosing Electronic Delivery. The Michigan ABLE Program is available to both in-state and out-of-state residents. Anyone can contribute to a Michigan ABLE Account, and the easy-to-use Ugift feature makes gift contributions easy.