Frequently asked questions
Scroll down to see answers to things we get asked a lot. If you're looking for something specific, enter or choose a keyword below.
- About ABLE
- ALR
- Benefits
- Contributions
- Eligibility
- General
- Gifting
- How the account works
- Linking bank accounts
- Opening an account
- Qualified expenses
- Successors and Estates
- Tax benefits
- How can I use the money in my account?
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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.
- Can I transfer an existing ABLE account into my Maryland ABLE account?
- Yes, but you can make only 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... Read more
- Can I close and transfer my Maryland ABLE account to an ABLE account in another state?
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Yes, but you can make only one rollover every 12 months. Use the other ABLE plan’s rollover forms to start the process.
- ABLE’s definition of qualifying disability expenses includes “education.” Can I roll my 529 account into an ABLE account?
- Assets from a 529 account can be rolled over into an ABLE account, though amounts to be rolled over are subject to the $17,000 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... Read more
- Can my ABLE account move from one state to another?
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Yes, you can choose to roll over your account from one state’s program to another.
- Does the Medicaid recapture of funds in an ABLE account as described in the Federal ABLE ACT known as “clawback” apply to Maryland ABLE 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... Read more
- What is the fee structure for the MD accounts?
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The complete fee structure is found in the Maryland ABLE Program Disclosure booklet.
- Is there a penalty for closing an ABLE account?
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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?
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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
