Frequently asked questions
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- About ABLE
- How the account works
- Opening an account
- Qualified expenses
- Tax info
- What is the fee structure for the MD accounts?
The complete fee structure is found in the Maryland ABLE Program Disclosure booklet.
- Is there a penalty for closing an ABLE account?
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.
- What happens to the account when the beneficiary turns 65?
Nothing changes to the ABLE account when the person turns 65.
- What’s the difference between an ABLE account and a Special Needs Trust?
- 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... Read more
- Who can contribute to an ABLE account?
Anyone! A family member, friend, or you, the person with a disability, may contribute to an ABLE account.
How much can I contribute yearly?
Each account can receive up to $17,000 in calendar year 2023. Contributions to the account made by anyone are post-taxed dollars.
- What is the maximum annual contribution?
- The total annual contributions by you, family and/or friends for calendar year 2023 are $17,000. This limit is tied to the federal gift tax exclusion. In future years, the IRS may change the annual amount that can be excluded from federal gift taxes, so you should consult with your tax advisor for... Read more
- What are the lifetime contribution limits?
Contributions can be given to a Maryland ABLE account up to a maximum account balance of $500,000.
- Can I make direct deposits into an ABLE account?
- 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... Read more
- Can wages or other income be deposited into an ABLE account?
Yes, any income can be deposited however total annual deposits may not exceed $17,000 in calendar year 2023.