Maryland

Program Name: Maryland ABLE (click to open an account) Phone: 1. 855.563.2253
Status: Open for Enrollment to residents of any U.S. state.
State Program Manager: Vestwell
State Account Limit: $500,000
Accepts Out Of State Residents: Yes
Rep. Payee Multiple Access: Yes. Call the ABLE plan to discuss the option to enroll multiple account owners and manage the accounts through the Organizational ALR Program.
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 the 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: BNY Mellon
Number Investment Options: 4
Program Investment Institution(s): Vanguard
Debit Prepaid Card Feature: Yes
Withdrawal Hold Rules: Yes.   Initial and subsequent contributions received from a Beneficiary or ALR following a new enrollment will be held for five (5) Business Days before funds are available for withdrawal. Contributions made as a gift from a third party may be held for up to 10 Business Days to ensure that the funds are received before the funds are available for withdrawal
Medicaid Estate Recovery Status: Under Maryland law, an agency or instrumentality of the State of Maryland may not seek payment from an ABLE account or its proceeds for any amount of medical assistance paid for the designated beneficiary unless required by federal law. Any remaining funds are payable to the Estate or to a successor designated beneficiary if one was appointed before the death of the original account owner.
State Income Tax Deduction: Yes. $2,500 of contributions per contributor and $5,000 for joint filers, per ABLE account may be subtracted from the gross wages of the filer prior to computing Maryland taxable income for Maryland state income tax payers (with a 10 year carry forward of contributions that excess contributions).
FDIC Insured: Yes. The Cash Option offers FDIC insurance up to $250,000, subject to certain restrictions.
ABLE Legislation:

The Maryland ABLE Act (2016 Maryland Laws Ch. 39 (H.B. 431) was signed into law by Governor Hogan on April 12, 2016, enabling Maryland to begin building an ABLE program. The Maryland ABLE program is implemented by an independent state agency, Maryland 529.

Account Disclosure Document(s):

Please See Plan Disclosure Link

• 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. $5.
• Is there an annual set fee to maintain the account? If so, how much?
  Yes. An annual Account Maintenance Fee of $35 is broken into quarterly installments and deducted from the account at the end of each quarter. The amount billed will be prorated for the calendar quarter during which you open your ABLE Account. Each quarter after that you will be billed $8.75.
• 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. The cost to the account holder is $1.25 per month, per card. The Program subsidizes $3.75 towards the cost of the card. The ABLE plan True Link Card offers easy access to ABLE funds and tracks QDEs for the ABLE account owner or Authorized Legal Representative. authorized legal representative.
• 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:
    An annual Account Maintenance Fee of $35 is broken into quarterly installments and deducted from the account at the end of each quarter. The amount billed will be prorated for the calendar quarter during which you open your ABLE Account. Each quarter after that you will be billed $8.75.
  • Check Fee:
    $2.50 paper check disbursement fee.
  • Debit Card Fee:
    $1.25 monthly fee is associated with utilizing the True Link Prepaid Card.
  • Investment Option Fee Range:
    

    Please See Plan Disclosure Documents

  • Statement Fee:
    Online and email statements available at no additional cost. Annual fee of $20 , charged quarterly and prorated, is charged for requests to mail paper statements and all other documents.
• Are there other characteristics unique to your program?
  

  Maryland ABLE has included in its rollover from 529 College Savings and gifting process a step for approval and limiting by the Beneficiary or ALR to ensure that beneficiaries that have savings goals in order to maintain benefits, based on assets outside of the ABLE account, can be completed throughout the calendar year.

  Does your plan allow for different Levels of Control for who manages spending and investments from the ABLE account? Maryland ABLE offers direct deposit for Social Security funds for account owners who have a representative payee. On the go account management can be done through the Vestwell mobile app. There is also a savings booster feature that allows auto contributions based on defined criteria.

  Do you have a policy for opening an account for an account owner who does not have a guardian or conservator for managing spending and investments from the ABLE account? An Authorized Legal Representative (ALR) can be appointed to a beneficiary who is not able to give consent based on the following hierarchy: Power of Attorney, conservator or legal guardianship, spouse, parent, sibling, grandparent, or a Representative Payee for the eligible individual by the Social Security Administration.

  Description of plan’s Recertification of ABLE Eligibility Policy: Certification is completed via self attestation at the time that the account is opened. An account holder attests that they willnotify the Program if eligibilty status changes.

  What is your plan’s policy regarding payment of funeral / burial expenses as a qualified disability expense (QDE) prior to account freeze, if available? The Program provides payments for funeral burial expenses after the death of a beneficiary per IRS regulations upon submission of receipts or bills.

  Does your plan allow for naming any beneficiary on the account? A successor designated beneficiary may be listed on an ABLE Account. This individual must be a sibling, stepsibling, or half-sibling of the current owner and must also be an Eligible Individual. Adding a successor designated beneficiary can be done online during enrollment or under account management for an existing account, or by submitting the Add/Edit/Remove Successor Owner Form. The designation must be made before the designated beneficiary’s death.

Maryland ABLE (click to open an account) Phone: 1. 855.563.2253