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This Issue of our AchievABLE Newsletter - March 2025 Edition contains stories on the following:
2025: the YEAR TO MAXIMIZE YOUR ABLE SAVINGS!
Greetings, readers!
2025 is shaping up to be a pivotal year for the disability community, offering an important opportunity to maximize your savings through three key provisions of the Achieving a Better Life Experience (ABLE) Act. However, time is running out as these provisions are set to expire at the end of this calendar year. Here is how you can take advantage and make the most out of ABLE accounts before it is too late.
- ABLE to Work If you are a working ABLE account owner and you or your employer do not contribute to a retirement account, you can contribute more than the standard $19,000 yearly limit (2025) in your ABLE account. The ABLE to Work provision allows you to contribute an additional amount equal to either your earnings or the previous year’s federal poverty level, whichever is less. This means you could save up to an additional $15,060 per year of savings if you live in the continental United States (or $18,810 in Alaska or $17,310 in Hawaii). It is a great way to increase savings without losing benefits!
- ABLE Saver’s Credit Do not miss out on the nonrefundable ABLE Saver’s Credit! This credit allows you to receive up to $1,000 on ABLE contributions, reducing your overall tax liability. This provision makes saving even more rewarding by giving you a tax break just for contributing to your future!
- 529 to ABLE Rollover Families with 529 education savings accounts can transfer funds into an ABLE account without incurring income tax liability. This rollover provision allows families to shift their focus from education expenses to long-term financial stability for individuals with disabilities while still preserving tax benefits.
As these beneficial provisions are set to expire, there is hope on the horizon! On Feb. 19, 2025, Sens. Eric Schmitt, R-Mo., and Chris Van Hollen, D-Md., along with Reps. Lloyd Smucker, R-Pa. and Don Beyer, D-Va., reintroduced the ENABLE Act to the 119th Congress, which would make these provisions permanent. Stay tuned for updates and be sure to advocate for this important legislation.
Let’s make 2025 a transformative year of growth and stability by leveraging these opportunities to strengthen your financial future.
Happy saving! Jody, Cheyenne, Marlene, and Laurie
able ambassador spotlight
Meet Cheryl Walfall-Flagg, a dedicated advocate, mentor and leader whose tireless work has made a significant impact on the ABLE community. Cheryl wears many hats, balancing her personal and professional commitments with unwavering passion. At home, she is a devoted mother, aunt and wife. Professionally, she serves as an executive assistant for a Durham, North Carolina based non-profit that provides local and national services to children, families and community organizations.
Cheryl’s community advocacy work involves being an Advisory Council Member and Parent Mentor for the University Office of the Family Support Network (FSN) of the University of North Carolina, a Parent Member of the Rethinking Guardianship, NC, a Facilitator for the Parent of Teens Support Group and an active NC ABLE advocate. She also represents ABLE NRC as an ambassador, a role in which she has excelled for multiple years.
Cheryl has been instrumental in advancing ABLE through her outreach. She played a key role in developing and launching the ABLE Youth Transition Toolkit for ABLE NRC, ensuring that young individuals and families have the resources they need for financial empowerment. Additionally, she has been a speaker and exhibitor at numerous conferences, consistently advocating for ABLE accounts. Whether addressing a large audience or engaging in one-on-one conversations, Cheryl’s authenticity, expertise and dedication shine through.
Recently, Cheryl expressed the joy she had in sharing information one on one with families at a local trunk-or-treat event. “One couple with a young daughter spoke with me for about 10 minutes. A family with an adult family member did not know about ABLE accounts and I was able to share information with them. After leaving, a parent called the church to contact me and get more information.”
If you are attending the North Carolina Head Start Association’s annual conference in Raleigh, NC, from March 12-14, 2025, you will find Cheryl proudly representing ABLE NRC at the exhibit table. Her presence at such events underscores her commitment to spreading awareness and educating families about the life-changing opportunities ABLE accounts provide.
Among Cheryl’s many accomplishments, she holds her role as a mother and aunt in the highest regard. Cheryl and her husband successfully support their son, Sean, and nephew, Davante, in managing their ABLE accounts, helping them build a secure financial future. Her advice to other parents is simple yet profound: setting up an ABLE account is easy and worthwhile. While daily struggles may be overwhelming, taking the time to establish financial stability today can lead to greater success and security in the future.
We celebrate Cheryl’s dedication and the positive impact she has made through her advocacy and leadership.
RECENT PUBLICATIONS & UPDATES
The ABLE NRC State Plan Search Tool now includes:
- A link to the ABLE plan’s informational flyer
- Special debit card features to help manage ABLE funds
- Identification of ABLE plans that allow organizational representative payees to manage multiple ABLE accounts
- A link to the ABLE plan’s investment performance report
- Details on how ABLE funds may be used to pay for qualified disability expenses upon the death of the account owner
ABLE plans have taken steps to reduce annual maintenance fees, increase savings balance limits and offer more choices to account owners.
ABLE Guide. ABLE NRC released a two-page flyer with key facts about ABLE accounts. Download it here!
ABLE NRC Year in Review. Check out our 2024 activities and ABLE milestones!
ABLE NRC’s Tax Facts and NDI’s Quick Reference Guide. The ABLE NRC along with our parent company, National Disability Institute (NDI), have compiled valuable resources to assist you this tax season. The ABLE NRC’s Tax Facts and NDI’s Quick Reference Guide ABLE Accounts and Tax-Time Savings offer essential insights on ABLE accounts and tax-time savings to help you navigate the details with ease!
ABLE NRC Blog. On December 19, 2024, the Social Security Administration shared a blog, ABLE Act – 10 Years of Progress for People with Disabilities, written by the ABLE National Resource Center team to commemorate the 10th year anniversary of the passage of the ABLE Act. The blog was distributed nationally.
Webinars-on-Demand. All our past webinars are available at no cost to access 24/7 at Webinars-on-Demand, including:
- ABLE Tax Time Tips. (recorded on 2/6/25)
- Celebrating 10 Years of ABLE: Its Impact and Vision for the Future . (recorded on 12/18/25)
ABLE BY the NUMBERS
More than 195,000 ABLE accounts have been opened nationwide with $2.3 billion in assets under management. The average ABLE savings balance is just above $11,700. Thank you to the National Association of State Treasurers (NAST) for providing this data.
ABLE Top 3 Questions & Answers
Question: I have an ABLE account and a special needs trust. My family has contributed funds to my ABLE account. My family is recommending that the trustee deposit funds from my ABLE account into the trust. Should that be done?
Answer: No. Withdrawing ABLE funds to deposit them into a special needs trust is not a qualified disability expense and may impact eligibility for SSI, Medicaid and other means-tested benefits. Keep in mind, ABLE funds may be used for qualified disability expenses which are much broader than acceptable disbursements from a special needs trust. An ABLE account offers more financial control for the ABLE account owner and ABLE investment growth is not taxable and does not count as income for means-tested benefits, even when disbursed in the future. Check out this toolkit to learn about how an ABLE account and trusts work together.
Question: What happens if a representative payee for a Social Security beneficiary changes and there are conserved funds held in the ABLE account?
Answer: Conserved funds are funds “leftover” from Social Security payments and saved in an account. If a representative payee changes, SSA provides guidance for transferring conserved funds held in an ABLE account. If SSA does not approve the direct transfer of funds to the new payee or if the new payee does not plan to keep the funds in the ABLE account, the conserved funds must be removed. In this case, removing the funds is considered a qualified disability expense. However, if the new payee deposits the funds back into the ABLE account, they count toward the annual contribution limit. To avoid complications, it is recommended to keep the conserved funds in the ABLE account whenever possible. SSA published ABLE accounts for representative payees earlier this year.
Question: To help me prepare for the tax season, what are IRS Forms 5498-QA and 1099-QA and how do they relate to my ABLE account?
Answer: Form 5498-QA is issued by your ABLE plan manager and sent to the IRS to report the total contributions made to your account, including any rollover contributions from a 529 plan. It helps ensure compliance with the annual contribution limit. Form 1099-QA is issued by your ABLE plan manager and sent to the IRS when you take a withdrawal, called a distribution, from your ABLE account. This form reports the amount and whether it was used for qualified disability expenses. If the distribution is qualified, it is not taxable; however, if it is non-qualified, the earnings portion may be subject to taxes and penalties. Both forms are important for tracking contributions and distributions. You will receive a copy of these forms, as applicable. If you use a tax preparer, share the forms and keep a copy with your important records. You do not need to file them with your federal tax return.
state updates
Idaho. The Idaho Treasurer proposed legislation that would allow Idaho to offer its own version of ABLE accounts. Idaho is one of four states that does not offer its own ABLE program. House Bill 26 was widely passed in both the House and Senate and now heads to the governor. The legislation includes the establishment of an ABLE Account Advisory Council.
Delaware. To celebrate 10 years of ABLE, the Delaware Department of Health and Social Services provided $20,000 in funds to support outreach initiatives designed to educate individuals about the benefits and opportunities of ABLE accounts. The funds will help raise awareness and help more people enroll in the program and start saving!
Nebraska. Legislative Bill 391 titled “Adopt the Give to Enable Scholarship Act” was introduced on January 17, 2025, and is scheduled for a hearing. This bill establishes a state fund for private donations to enhance ABLE account savings for Nebraskans with disabilities. It expands the ABLE program by creating this new fund and offers tax incentives for contributions.
Oklahoma. House Bill 1837 was introduced February 3, 2025, to add key protections to ABLE accounts from Medicaid recovery liens, claims and reimbursement proceedings filed by the Oklahoma Health Care Authority. It maintains existing protections that prevent ABLE accounts from being garnished, attached or subject to other legal processes. The bill was referred to Appropriations and Budget and is in a subcommittee as of February 4, 2025. If approved, it is set to become effective on November 1, 2025.
Pennsylvania. State Senator Lisa Baker (R-Lehman Township/PA) invites all Veterans, not exclusively Veterans of Foreign Wars (VFW) members, to schedule an appointment to meet with a VFW Service Officer at one of her offices to receive free information and assistance for government benefits. The assistance may include VA healthcare, compensation, pension, education and dependent benefits. Senator Baker states, “I have been honored to work on programs to help them (Veterans) exercise more control over their lives, including creating ABLE accounts to help save for the future….”
advancing able
Social Security Administration (SSA). Watch SSA’s latest ABLE video to learn in less than 3 minutes how an ABLE account can help you to save and invest without losing key benefits like SSI.
Veterans Administration (VA). The VA shared ABLE information in their 2025 Federal Benefits for Veterans, Dependents, Survivors and Caregivers guide (pages 106-107).
Stay tuned for #ABLEtoSave activities in April 2025. This month-long campaign provides people with disabilities and their families information about the significance of ABLE accounts and how these accounts can be used to address daily needs, help achieve long-term goals and dreams and increase their financial well-being. Register for upcoming webinars, use materials in our #ABLEtoSave Toolkit) and follow us on social media @theablenrc on Facebook, Instagram and Threads and on LinkedIn.
PHOTOS: (First) Green graphic with white text reading: AchievABLE Newsletter: A newsletter from the ABLE National Resource Center. A dark teal ribbon in the right corner of the graphic reads: “March 2025 Edition.” (Second) Green graphic with white text reading: Ambassador Spotlight: Cheryl, ABLE NRC Ambassador. There is a photo of Cheryl in the center in the graphic. (Third) Green graphic with white text reading: ABLE NRC’s 2024 Year In Review. There is a photo of the PDF in the center of the graphic.