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.
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 If you’re eligible for SSI, the money must be used within the month it was withdrawn so it doesn’t count as income for the month in determining your SSI eligibility.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.
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.
Maybe. Qualified disability expenses may differ from beneficiary to beneficiary depending on their disability. A vacation could qualify as an eligible expense if it maintains or improves the health, independence, or quality of life of the person living with a disability.
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.
Some states offer parity, meaning that the contributor’s state of residence may offer a state deduction for putting money into another state’s plan. It would be dependent upon each state’s individual program.
As long as the money in your Maryland ABLE account is used for eligible expenses, it won’t be counted as income for your state or federal taxes. If a purchase doesn’t qualify as an eligible expense, you’ll have to pay taxes and a 10% penalty on the amount. If you want to know more about the IRS regulations, you can find info here.
You can keep your federal and state benefits (SSI, SSDI, Medicaid, SNAP, TANF, HUD Assistance, Section 8, etc.) with an ABLE account. If you receive SSI, there is a $100,000 limit before Social Security benefits are affected. As long as the money withdrawn is used for eligible expenses, it won’t count towards the limit. Don’t forget that all housing expenses must be paid in the same month the money is withdrawn or be reported as income. All other benefits, like Section 8, are protected regardless of the amount saved in the account.
For SSI benefits only, you can have up to $100,000 in the account before the funds start to count against the $2,000 asset limit. Other federal and Maryland state means-tested benefits are not affected, regardless of the balance in the account.
The money in the account generally isn’t considered an asset for state and federal means-tested benefit purposes. For SSI benefits only, you can have up to $100,000 in the account before the funds start to count against the $2,000 asset limit.
Yes, monthly transfers are a great way to help a Maryland ABLE account grow to reach your yearly goal. Direct deposits, also known as monthly transfers, are automatic contributions that you can set up in just a few steps directly from your account. Look for the “Transfers” button once you’re signed in and follow the set up for Monthly Transfers.
If you do not spend down the account on qualified disability expenses, you do pay a penalty at the time of closing out the account. Please see the Maryland ABLE Program Disclosure Booklet for complete information on closing an ABLE account.
Once you are ready to enroll, you can set up your account here on line. When opening a Maryland ABLE account, have ready information about the beneficiary, qualifying disability, and how the ABLE account will be funded.
Here are a few ways to get answers. You can contact us online, give us a call Monday through Friday, at 1-855-563-2253 from 9am-5pm ET or 1-844-888-2253 (TTY) from 9am-8pm ET, or you can browse frequently asked questions.