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FAQs

For answers to questions asked during the April 2023 IAble webinar with the Iowa DD Council, reference the Webinar Q&A PDF.

Opening an IAble account

What does ABLE mean?

What is the minimum contribution amount?

Do I have to prove eligibility?

Do I have to live in Iowa to open an IAble account?

Can I have more than one ABLE account?

I am on public benefits. Will I lose them if I have an IAble account?

Are there income thresholds for opening an Account?

What about Medicaid estate recovery?

Who can open an Account on behalf of an Eligible Individual?

 

Withdrawing from an IAble account

What are Qualified Disability Expenses?

Do I have to prove withdrawals are for Qualified Disability Expenses?

 

Contributing to an IAble account

How much can I contribute to my account?

I am working and earning income - can I contribute more than the $18,000 limit?

Can I roll over a 529 plan account into my IAble account?

Who can contribute to my IAble account?

How can friends and family members use Ugift® to contribute to my account?

 

Understanding your investments

What savings and Investment Options can I choose?

Are there fees charged to an IAble account?

What is a Systematic Exchange?

 

Opening an IAble account

What does ABLE mean?

ABLE stands for the Stephen Beck, Jr. Achieving a Better Life Experience Act of 2014 and refers to savings and investment accounts Eligible Individuals with disabilities can own for the purpose of financing Qualified Disability Expenses. IAble is Iowa’s dedicated ABLE program.

 

What is the minimum contribution amount?

You can open an account with just $25. Each additional contribution can be as little as $25.

 

Do I have to prove eligibility?

No. However, you should have a record of the doctor's signed diagnosis, a benefits verification letter from the Social Security Administration or other relevant documentation for verification, as needed.

 

Do I have to live in Iowa to open an IAble account?

No. You may still open an IAble account even if you are not an Iowa resident.

 

Can I have more than one ABLE account?

No. You're limited to one ABLE account, except in the case of a rollover from another qualified ABLE program. This extends beyond IAble to include accounts in other ABLE programs.

 

I am on public benefits. Will I lose them if I have an IAble account?

No. You will not lose, or lose eligibility for, federal benefits including Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), Medicaid and Housing and Urban Development (HUD). If you are an SSI recipient, you can save up to $100,000 in your IAble account and still receive your monthly SSI benefits. See the Plan Disclosure Booklet for important details.

 

Are there income thresholds for opening an Account?

No. Eligibility is based on the individual’s disability and not salary or income.

 

What about Medicaid estate recovery?

Under Iowa law, most Medicaid recovery is not allowed. However, there are specific cases required by federal law where Medicaid must be recaptured. This includes situations where the Account Owner received Medicaid at the age of 55 or older, or the Account Owner received Medicaid for certain Long Term Support Services (LTSS) and were subject to Post-Eligibility Treatment of Income (PETI) rules. Under all circumstances, Qualified Disability Expenses, including burial and funeral, are paid prior to recapture. Check with your public benefits specialist about your specific circumstance.

 

Who can open an Account on behalf of an Eligible Individual?

ABLE regulations expanded the list of Authorized Individuals who can open an ABLE account. No backup documentation is required to prove Financial Authority to act on behalf of the IAble Account Owner, but you must certify under penalties of perjury that no other person with a higher priority is willing or able to act as an Authorized Individual, and notify IAble if your authority expires or is removed. See our Who Can Open an Account? page or the Plan Disclosure Booklet for more information.

 

Withdrawing from an IAble account

What are Qualified Disability Expenses?

These are any expenses incurred as a result of living with a disability and are intended to improve your quality of life, health and provide greater independence. The U.S. Department of the Treasury has indicated Qualified Disability Expenses can be construed broadly to include basic living expenses and include things like education, personal support services, assistive technology, transportation, housing, job coaching and more.

 

Do I have to prove withdrawals are for Qualified Disability Expenses?

Not at the time of the withdrawal. Annually, IAble will report the total amount of your withdrawals to the IRS, and will report Account balances monthly to the Social Security Administration. In the event either entity wants to verify the expenses, it’s recommended you keep detailed records.

 

Contributing to an IAble Account

How much can I contribute to my Account?

Effective January 1, 2024, the Federal Annual Contribution Limit is $18,000. This means no more than $18,000 can be contributed in a year. However, if you are working and earning income, you may be eligible to contribute more. Contributions can be made to your Account until the balance reaches the Account Balance Limit of $420,000.

 

I am working and earning income - can I contribute more than the $18,000 limit?

Yes - ABLE Account Owners who earn income may exceed the $18,000 Annual Contribution Limit. The additional annual contribution amount allowed is equal to the federal poverty level for a one-person household (in your state of residence) or the Account Owner's gross wages, whichever is less. In Iowa it is $14,580.

 

Can I roll over a 529 plan account into my IAble account?

Yes. A rollover from a 529 plan account, such as College Savings Iowa, into an IAble account can be made as long as the Beneficiary of the 529 plan is the IAble Account Owner or a “member of the family” (as defined by Section 529) of the Account Owner in the ABLE plan. It’s important to note the rollover will count towards your $18,000 Annual Contribution Limit. Under current federal law, this feature is only available until December 31, 2025.

 

Who can contribute to my IAble account?

Anyone, including yourself, friends, family members, business, employer, trust, corporation or other legal entity can contribute to your Account. No matter who contributes, you, the Account Owner or Authorized Individual, retain control over the Account.

 

How can friends and family members use Ugift® to contribute to my account?

Ugift® is a feature of your ABLE Account that allows others to contribute to your savings in lieu of traditional gifts. It's simple to use - just log in to your Account to find your code and share it with friends and family, who can use it at UgiftABLE.com to contribute directly into your Account. Learn more by reviewing the Ugift ABLE FAQ

 

Understanding your investments

What Savings and Investment Options can I choose?

You may choose among any combination of six risk-based Investment Options and an FDIC-insured interest-bearing Checking Account Option with a debit card provided through Fifth Third Bank.

 

Are there fees charged to an IAble account?

Yes. The Annual Account Maintenance Fee of $58 will be withdrawn quarterly in the amount of $14.50. For Account Owners electing in e-delivery of statements and confirmations, the Annual Account Maintenance Fee will be reduced to $33 and will be withdrawn quarterly in the amount of $8.25. Additionally, there are Annual Asset-Based Fees on the six risk-based Investment Options, ranging from 0.30% to 0.33% depending on the option. For the Checking Account Option through Fifth Third Bank, there is a monthly service fee of $2.00, which is waived if you select e-delivery of your Account statements or have an average monthly balance of at least $250.

 

What is a Systematic Exchange?

Systematic Exchanges are an optional feature that allows for the scheduled, automatic reallocation of assets in the Account from an Investment Option to one or more other Investment Options.

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