Yes, you can open and manage multiple accounts for beneficiaries if you are their Authorized Legal Representative. Remember that each beneficiary can have only one ABLE account open at a time. Each Maryland ABLE account can be connected to one or more bank accounts.
As established by the Federal ABLE Act, funds remaining in the account upon the beneficiary’s death may be used to reimburse the state for Medicaid-related services. The amount of any Medicaid payback is calculated based on amounts paid by Medicaid after the creation of the ABLE Account and excludes amounts paid by the beneficiary as premiums to a Medicaid buy-in program. 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.Read the full guidance from Centers for Medicare and Medicaid.
Assets from a 529 account can be rolled over into an ABLE account, though amounts to be rolled over are subject to the $15,000 annual contribution limit. Current federal law requires such rollovers to be completed by December 31, 2025. To make a direct rollover from a 529 account, the ALR or beneficiary can fill out the 529 College Savings to ABLE Rollover (Direct) form. In a direct rollover, the two programs transfer assets directly from one to the other. For an indirect rollover, in which the account holder of the 529 plan would take possession of funds before they are transferred, the 529 College Savings to ABLE Rollover (Indirect) form should be used. In an indirect rollover, assets have to be deposited to the new ABLE account within 60 days of withdrawal. ABLE account holders can ...
You can withdraw money from the account and use it for eligible qualified disability expenses which includes most costs associated with living with a disability. See the list of approved categories for more details.
Although both can be established to enable a person with a disability to acquire assets without jeopardizing benefits, it’s important to know that an ABLE account allows the person with the disability to open and manage the account on his/her own. The ABLE account must be used for any qualifying disability-related expense, and upon the death of the beneficiary, the remaining funds may be paid to Medicaid if the person received Medicaid in his/her lifetime.A Special Needs Trust is set up so that someone designated as a trustee maintains complete discretion over the trust property and is in charge of spending money on behalf of the person with a disability. The trustee does not provide money directly to the person but rather spends the money on that person’s behalf. A special needs trust ...
You have plenty of options when it comes to managing multiple banks and/or beneficiaries. If you’re an ALR of more than one account, you can use the same banking information on multiple Maryland ABLE accounts, as long as you own or are the Authorized Legal Representative (ALR) of those accounts. Otherwise, each beneficiary can use one or more bank accounts in their or the ALR’s name.
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.
Yes, but you can only make one rollover every 12 months. You can use an ABLE to ABLE Rollover Form to get started. There are also rollover options which would also change the beneficiary to an eligible family member if the rollover happens before the death of the original beneficiary who opened the account.
To keep the account safe, don’t share your password or let someone else have access to your account, unless they are the Authorized Legal Representative. If you want to add, change, or remove the Authorized Legal Representative for the account, we have forms to help you with the process.
Everything can be managed online. The money can be saved in a cash option and/or invested in one of the three investment options offered: ABLE Conservative, ABLE Moderate and ABLE Aggressive. These choices are made during the account setup. By law, you can only make investment changes on your account twice a calendar year, and this includes changes to the allocation between cash/investment or changes to the investment option. Contributions and withdrawals can be initiated whenever you want.
Once you’re logged into your Maryland ABLE account, find your “Accounts” section in Your Profile and click on “Add a new bank account.” Follow the steps to connect a new bank account associated with either the beneficiary of the Maryland ABLE account or the Authorized Legal Representative. Keep in mind that you won’t be able to move money from a Maryland ABLE account to newly added bank account for 30 days so that we can verify the information you gave us.
Unfortunately, you can’t add an additional investment option, but you can switch the choice you’ve already made — that is, your previously chosen option — up to twice per year. To change your current investment option, simply log into your account and “edit” your plan to make the changes you’d like.
If you decide to invest all or some of the money, there are three investment options to pick from: ABLE Conservative, ABLE Moderate and ABLE Aggressive. We can help educate you on the differences between the three, but we can’t tell you which one to pick. You can learn more about the benefits and differences on the Investment Options page and in the Program Disclosure Booklet.
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.