Frequently asked questions
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- About ABLE
- How the account works
- Opening an account
- Qualified expenses
- Tax info
- 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.
- Are contributions considered to be an asset?
The money in the account generally isn’t considered to be an asset for state and federal means-tested benefit purposes. For Supplemental Security Income (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.
- What type of bank accounts can I add?
You can connect a checking or savings account to any Maryland ABLE account. These types of accounts use ACH payments, which are a fast and efficient way to make electronic payments.
- What is ABLE to Work?
- The ABLE to Work Act allows beneficiaries who are employed to contribute an amount equal to the Beneficiary’s compensation for the taxable year (up to a maximum of $13,590 in 2023) each year to their ABLE accounts in addition to the annual standard contribution limit of $17,000. You can make an... Read more
- Can I roll over a 529 College Savings Plan into my ABLE account?
- Yes, you can roll over money from a 529 college savings account into a beneficiary’s (or family member’s*) ABLE account without being penalized. There is a $17,000 rollover limit (less the current tax-year ABLE contributions). You can use the appropriate 529 College Savings to ABLE Rollover... Read more