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 account. After 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 ...
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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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What does eligible mean?›

The test for determining eligibility for an ABLE account is found in Section 529A of the Internal Revenue Code. To be eligible, the onset of the disability must be before age 26. A person who is entitled to benefits such as Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) or provides a “disability certification” is eligible. If you meet the age criteria and are already receiving benefits under SSI and/or SSDI, you are eligible to establish an ABLE account. 
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Who can open an ABLE account?›

ABLE accounts can be opened for eligible U.S. citizens and legal residents living in any state in the United States, regardless of whether the state has an ABLE program. An adult beneficiary with a qualifying disability can open and manage a Maryland ABLE account or have an Authorized Legal Representative do it for them. If a beneficiary is under the age of 18, they must have an Authorized Legal Representative (also known as an ALR) open an account for them. An ALR must be able to show a valid Power of Attorney, Legal Guardianship documentation, or be a parent of a beneficiary under the age of 18. A Social Security Representative Payee does not qualify as an ALR and cannot open an account for an eligible beneficiary unless they also have a valid Power of Attorney. Learn more ...
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