North Carolina

Program Name: NC ABLE (click to open an account) Phone: 1-888-627-7503
Status: Open for Enrollment
State Program Manager: Ascensus College Savings Recordkeeping Services, LLC
State Account Limit: $540,000
Accepts Out Of State Residents: Yes
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 less. This is up to $15,060 for residents of the continental U.S.; $18,810 for residents of Alaska and $17,310 for residents of Hawaii.
Program Banking Institution: Fifth Third Bank
Number Investment Options: 8
Program Investment Institution(s): The Investment Options include 7 Asset Allocation Options with underlying investments managed by BlackRock, Schwab, Vanguard, and Capital Group-American Funds. Fifth Third Bank provides the 8th Investment Option, a Checking Account Option, which invests 100% of assets in an FDIC-insured checking account.
Debit Prepaid Card Feature: Yes
Withdrawal Hold Rules: Yes.   Contributions to the Asset Allocation Investment Options will be held for 5 or 6 business days before becoming available for withdrawal. Contributions to the Checking Account Option will be held for 6 or 7 business days before becoming available for withdrawal.
Medicaid Estate Recovery Status: To the extent provided in subsection 26 U.S.C. §529A(f) upon the death of the Account Owner, the Member State shall have a claim for payment from the Account Owner in an amount equal to the total medical assistance paid for the Account Owner after the establishment of the account. The Member State may file its claim for repayment from the account with the State Treasurer within 60 days of receiving notice from the State Treasurer of the death of the Account Owner. Any remaining funds in the Account Owner's Account shall be distributed as provided in the Plan Disclosure Documents or distributed to the Account Owner's estate if no other designation is made.
State Income Tax Deduction: No.
FDIC Insured: Yes. The Checking Account Investment Option invests 100% of its assets in an FDIC-insured checking account held at Fifth Third Bank.
ABLE Legislation:

HB 556 Legislative Summary

Account Disclosure Document(s):

Please see the Plan Disclosure Documents

 

• Is there an initial minimum contribution requirement to open an ABLE account? If so, how much?
  No.
• Is there a required minimum contribution to your account? If so, what is the amount?
  Yes. $1.
• Is there an annual set fee to maintain the account? If so, how much?
  Yes. The Annual Account Maintenance Fee is $56.00, reduced to $31.00 for E-delivery of statements and confirmations for in-state and out-of-state Account Owners.
• Are there fees or restrictions to the number of disbursement you are allowed? If so, what are they?
  No.
• 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. $0.
• Fee Range
  • 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).
  • 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 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 electronic statement delivery.
  • Statement Fee:
    The Annual Account Maintenance Fee is $56.00, reduced to $31.00 for E-delivery of statements and confirmations for in-state and out-of-state Account Owners.
  • ABLE Account Transfer Fee:
    $0
  • Withdrawal Transaction Fee:
    $0
• Are there other characteristics unique to your program?
  

  North Carolina is a member of the National ABLE Alliance, a non-partisan consortium of states and the District of Columbia. North Carolina savers and investors can choose among 8 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 North Carolina ABLE Program is available to both in-state and out-of-state residents. Anyone can contribute to an North Carolina ABLE Account, and the easy-to-use Ugift feature makes gift contributions easy.

  Where can I find the ABLE Plans’s investment performance information? Please see the Plan Disclosure Documents

NC ABLE (click to open an account) Phone: 1-888-627-7503