Virginia – ABLEnow

Program Name: ABLEnow (click to open an account) Phone: 844-669-2253
Status: Open for Enrollment
ABLE Plan Flyer: https://www.ablenow.com/resources/documents/
State Program Manager: Commonwealth Savers Plan selected Ascensus as the recordkeeper of ABLEnow
State Account Limit: $675,000
Accepts Out Of State Residents: Yes
Annual Contribution Limit: $20,000 (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 $15,650 for residents of the continental U.S.; $19,550 for residents of Alaska and $17,990 for residents of Hawaii.
Program Banking Institution: Fifth Third Bank and Bank of New York Mellon
Number Investment Options: 5
Program Investment Institution(s): Vanguard, Atlantic Union Bank
Debit Prepaid Card Feature: Yes
Withdrawal Hold Rules: Yes.   Typically, funds are available between five to seven business days after the contribution is initiated. The availability of funds for withdrawal will vary depending on the type of contribution.
Medicaid Estate Recovery Status: Unless required by federal law, the Virginia Department of Medical Assistance Services may not pursue Medicaid recovery claims against the ABLEnow or ABLEAmerica accounts of Virginia residents. For customers who received Medicaid benefits outside Virginia during the time they had an ABLEnow or ABLEAmerica account open, that state’s Medicaid program can file a claim for some amount of repayment upon death. Before that happens, funds from the beneficiary’s ABLE account may be used by their estate to repay any outstanding qualified disability expenses, including funeral and burial costs.
State Income Tax Deduction: Yes. Virginia offers an annual state income tax deduction of up to $2,000 per contributor for contributions to an ABLEnow or ABLEAmerica account.
FDIC Insured: Yes. Balances in the FDIC Insured Savings Account and Checking Account options are insured to the extent allowed by the Federal Deposit Insurance Corporation (FDIC).
ABLE Legislation:

Sections 23.1-700 through 23.1-713 of the Code of Virginia, as amended

Account Disclosure Document(s):

Please See Plan Disclosure Documents


Additional Information:

Does your plan allow for proper account titling for a representative payee? ABLEnow allows individual and organizational representative payees to open accounts as Authorized Individuals, so the representative payee has full control over account funds.

What is your plan’s policy regarding payment of funeral / burial expenses as a qualified disability expense (QDE) prior to account freeze, if available? An ABLEnow account’s Authorized Individual may pay any outstanding qualified disability expenses for a deceased Account Owner from the ABLEnow account, including funeral expenses prior to a final distribution of the account funds.

Most ABLEnow gift-givers can make contributions via Ugift.

Account owners can name a Successor Account Owner. The Successor Account Owner must be an eligible individual and a sibling who will take ownership of the account upon the Account Owner’s death. The balance of an Account upon the Account Owner’s death is subject to reductions in the balance as mandated by Applicable Law.

Program at a Glance

  • Is there an initial minimum contribution requirement to open an ABLE account? If so, how much?
    Yes. $5.
  • 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. Yes $34 annually (electronic statements); $51 annually (paper/mail statements)
  • Are there fees or restrictions to the number of disbursements 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. Through Fifth Third Bank. $2 monthly (waived if the average monthly balance is $250+ during a statement cycle, OR enrolled in paperless statements).
  • 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:
      $34 per year, payable at $8.50 per quarter when enrolled in electronic statement delivery. If paper/mail delivery is selected, the fee is $51 annually ($12.75 quarterly).
    • Check Fee:
      Only for the Checking Account option, checks may be purchased for $6.00 per checkbook.
    • Debit Card Fee:
      For the Fifth Third Bank Checking Account option a debit card is available with no overdraft fees. There is a $2 monthly fee (waived if the average monthly balance is $250+ during a statement cycle OR enrolled in paperless statements).
    • Investment Option Fee Range:

      The Total Expense Ratio for each of the Aggressive Growth, Moderate Growth, and Conservative Income portfolios is 0.18%.  The total Expense Ratio of the FDIC Insured option is 0.15%. Please see ABLEnow.com/saving-investments/fees for more information.

       

    • Statement Fee:
      Quarterly statements included for the electronic statement delivery option for the annual maintenance fee noted above ($34 annually) and statements are mailed for the paper delivery option included with annual maintenance fee noted above ($51).
    • ABLE Account Transfer Fee:
      $0
    • Withdrawal Transaction Fee:
      $0
  • Are there other characteristics unique to your program?

    ABLEnow is the national, direct-sold ABLE savings program administered by Commonwealth Savers. Launched in 2016, ABLEnow features a convenient website to open and manage your account anytime, an entity management dashboard for organizations that assist clients with an ABLE account, an ABLEnow debit card for everyday spending, and in-house ABLE experts available by phone and email.

    Description of plan’s Recertification of ABLE Eligibility Policy: See plan disclosure documents.

ABLEnow (click to open an account) Phone: 844-669-2253