What happens if the beneficiary is no longer eligible for an account?›

If a beneficiary no longer meets eligibility requirements, they no longer qualify for an ABLE account and they (or their account manager) should sign in to their account’s settings and update their eligibility. Their account will remain open and they can continue to use the account until the end of the year, but will no longer be able to sign up for a prepaid card accountAfter the end of the year, they stop being eligible, no new contributions (including automatic transfers) will be allowed and account withdrawals will be treated as non-qualified withdrawals. The earnings portion of non-qualified withdrawals is subject to income taxation and to a 10% federal tax penalty, and non-qualified withdrawals may affect eligibility for SSI and other federal benefits. The account will close if ...

How does gifting work?›

To help friends and family grow a loved one’s ABLE account, we created a special Gifting Form to facilitate the process. Fill out the information about the beneficiary and their ABLE account, and include a check of at least $10 made payable to the Maryland ABLE with the amount you want to gift. The money will go directly into their ABLE account, without affecting their benefits. Then, mail the check and the top part of the form to the address included. As a final step, you can give the detachable gift certificate to the beneficiary for their records.We’re working on a faster, simpler way to gift money online. Check back soon to try it out. 
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What type of disabilities qualify for an account?›

A person with any disability that qualifies for SSI or SSDI or blindness that developed before the age of 26 is eligible for an account. Some of the conditions recognized by the Social Security Administration that could qualify based on the level of severity include: blindness, Down Syndrome, hearing loss (deafness), epilepsy, autism/Asperger and more. Those who don’t receive Social Security benefits are still eligible if they are able to get a signed Diagnosis Form from a licensed physician. 
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What are the documentation requirements?›

You must self-certify that you have a licensed doctor’s diagnosis and signature or that you have a signed letter from a licensed doctor confirming that you meet the qualifying disability criteria. Proof of documentation could be requested for any audit completed by the Internal Revenue Service.
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What is disability certification?›

A diagnosis from a licensed doctor of blindness or a physical or mental impairment which results in “marked and severe functional limitations” lasting for a continuous 12 months or longer or which can be expected to result in death.The certification must state that the disability occurred before the date on which the beneficiary turned 26, and include the individual’s diagnosis signed by a licensed physician.
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How do I prove an eligible expense?›

We don’t need proof of your expenses, but you should have it for your records as the IRS may require you to provide proof of qualified disability expenses in the case of an audit. If you sign up for a Prepaid Card, you can review and manage your card activity online from your separate prepaid account. This will help keep track of your purchases, but you’ll still need to save your receipts in case the IRS asks for them.
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Can I use funds to pay for housing or rent?›

You can use money from an ABLE account for housing expenses. If you’re eligible for SSI, the money must be used within the month it was withdrawn so it doesn’t count as income for the month in determining your SSI eligibility. Plus, having an ABLE account doesn’t affect other housing benefits, like Section 8.
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What happens if I withdraw money for a non-eligible expense?›

You’ll have to pay taxes on any non-eligible expense, plus a 10% penalty on the earnings portion of the withdrawal. A withdrawal used for a non-eligible expense could affect your eligibility for SSI benefits, Medicaid or other much-needed benefits under federal or state programs, as could a withdrawal that is applied to a housing expense in any month after the month of the withdrawal.
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What is considered a “qualifying expense”?›

A "qualified disability expense" means any expense related to the beneficiary as a result of living a life with disabilities. These may include education, housing, transportation, employment training and support, assistive technology, personal support services, health care expenses, financial management and administrative services and other expenses which help improve health, independence, and/or quality of life.
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