How Do I Choose a Plan?
HOW DO I CHOOSE WHICH ABLE PLAN IS BEST FOR ME?
Many ABLE programs are similar, though they may differ in important ways. There is no “one size fits all” when it comes to choosing an ABLE plan and, with over 45 options to choose from, it is important to know how to find a plan that best meets your needs.
The ABLE National Resource Center (ABLE NRC) is committed to helping you decide by providing up-to-date state plan information and comparison tools. No matter where you reside, you can open an ABLE account in any state that allows out of state residents to open an account. In 2024, there are 31 ABLE plans that accept out-of-state residents. You do not need to wait for your state to open an ABLE program to enroll in an ABLE plan. Note: a person can only open or have one ABLE account at a time.
The following rules apply the same to all ABLE plans:
- Eligibility (age and disability severity criteria) and hierarchy of authority to open an account.
- Annual contribution limits.
- Allowance of third-party contributions.
- Asset exclusions from Federally funded needs-based benefit programs (SSI (Supplemental Security Income), SSDI (Social Security Disability Insurance), FAFSA (Free Application for Federal Student Aid), HUD (Housing and Urban Development), SNAP (Supplemental Nutrition Assistance Program), Medicaid and Medicare).
- Tax-free investment growth.
- Allowance of roll over of funds once every 12 months into another state ABLE plan.
- Changes in investment direction/strategy limited to twice per calendar year.
- Contribution and withdrawal “hold” (although the amount of time for the hold may vary).
- The maximum state plan savings limit is the same amount as the state’s 529 Qualified Tuition Plan limit.
- The ABLE account cannot be used as security for a loan.
- Funds in ABLE accounts may only be used for qualified disability expenses (QDE).
The following features of ABLE plans may vary:
- State residency requirements to enroll
- Minimum contribution amount
- Savings, checking and investment options
- ABLE plan limit/cap of funds allowed
- Availability of debit and purchasing cards
- Amount of time of contribution/withdrawal holds
- Medicaid recovery
- State income tax deduction
- Fees (debits, checks, rollovers, annual maintenance, statements, transfers, etc.)
- Banking institution
- Assigned ABLE Program Manager
USING THE COMPARISON TOOLS
To compare the differences and explore options, use one or more tools. It is a best practice to explore your own state plan first.
- State Comparison Tool: This tool provides side-by-side features at-a-glance for up to three different ABLE plans.
- Search by Program Feature: Starting with the state you live in, this link provides a checklist of plan features for all state ABLE plans. The results also give you a downloadable CSV file of information for all states.
- Select a State Map: Provides a visual map of each state that has an ABLE plan and includes a direct link to each ABLE plan.
No matter where you reside, you can open an ABLE account in any state that accepts out-of-state residents in their program. Let us help you find the right fit!