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IAble Overview

To all of your abilities, now add the ability to save.

With IAble, you can save for qualified disability expenses without losing your eligibility for certain assistance programs, like SSI and Medicaid.

Defining ABLE

1. What are ABLE accounts?

ABLE accounts are tax-free savings accounts for people with disabilities and their families. ABLE stands for Achieving a Better Life Experience.

2. What are ABLE's benefits?

For the first time, people with disabilities and their families can save for disability-related expenses without losing their eligibility for certain assistance programs, like SSI and Medicaid. These accounts can be used for short-term savings or long-term investing, whatever best meets the needs of the account owner.

3. Are there tax advantages?

The earnings in ABLE accounts grow federally tax-deferred and withdrawals are tax-free if used for qualified disability expenses.* Iowa taxpayers can deduct up to $3,319 in contributions from their adjusted gross income for 2018.**

 

Account Owners

1. Who can open an IAble account?

Eligible individuals can open an account for themselves, or an Authorized Individual can open an account on their behalf. For more information regarding eligibility requirements, visit our Eligibility page.

2. 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 account verification, as needed.

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

No. Anyone in the United States can open an IAble account. However, only Iowa taxpayers can receive the state tax deduction.**

4. Can I have more than one 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. In the case of a rollover to an ABLE account for the same account owner, the account from which the funds are withdrawn must be closed within 60 days of the withdrawal.

 

Authorized Individuals

1. Can a parent or other legally appointed person open and manage an account on behalf of his/her child or dependent (the Eligible Individual)?

Yes. The Account Owner, who is the Eligible Individual, may designate an Authorized Individual to open and act on the Account on his/her behalf. An Authorized Individual is a person designated to act on the Account Owner’s behalf with respect to the Account if:

  1. The Account Owner is not able to exercise signature authority over the Account, OR

  2. The Account Owner has legal capacity, but has granted another person power of attorney

For specific information, please see the questions below regarding minors and adults.

2. I am the parent or other legally appointed person of an Eligible Individual who is under the age of 18. How do I enroll as an Authorized Individual?

If you are the parent or guardian of an Eligible Individual who is under the age of 18, you may enroll as an Authorized Individual during the enrollment process and do not need to provide additional documentation.

3. I am the parent or other legally appointed person of an Eligible Individual who is 18 or older. How do I become an Authorized Individual?

If you are the parent or other legally appointed person of an Eligible Individual who is 18 or older, you may enroll as an Authorized Individual during the enrollment process. You must provide the appropriate authorizing documentation showing you are able to act on behalf of the Account Owner in all financial matters. Because each state has different laws regarding substitute decision making, IAble will review documents for non-Iowa residents based on the laws of the state in which that document was issued. Please note that a guardian appointed by an Iowa court typically only has authority to make decisions over the physical person, not over the person’s property. Therefore, a guardian in Iowa typically does not have the authority to become an Authorized Individual. The following outlines what is necessary to become an Authorized Individual in certain situations:

If the Account Owner lacks capacity, you must provide the appropriate authorizing documentation showing you are able to act on behalf of the Account Owner in all financial matters. A conservator appointed by the court for an Eligible Individual must provide a copy of Letters of Appointment by the court.

If the Account Owner has legal capacity but has granted another person Power of Attorney, you must provide a copy of signed Power of Attorney forms that address the ability to act on financial matters.

If the Account Owner has legal capacity and wants another person to be able to transact on the account as well, the Eligible Individual can name an Authorized Agent. There are four levels of access that can be granted, from receiving statements only to full Power of Attorney over the account.

 

Investing

1. How is the money invested?

Account owners may choose from six investment options and a checking option. These options allow owners to save in the way that best fits their needs and their comfort with risk. Visit our Investment Options page for more information.

2. How often can I change my IAble investments?

Twice per calendar year. You can change your investment options for any new contributions at any time.

 

Contributions and Withdrawals

1. Who can contribute to an IAble account?

Anyone can contribute to an IAble account, including the account owner, friends and family. No matter who contributes, the account owner retains control over the account.

2. What is the minimum contribution and how do I contribute to my account?

The minimum contribution to an IAble account is $25. Contributions can be made via check, wire transfer, payroll direct deposit (if offered by your employer), recurring contributions from a checking or saving account and Electronic Funds Transfer (EFT). Contributions may also be made by Rollover from another ABLE program during the life of the Account Owner.

3. How do I withdraw from my account?

Withdraw your IAble funds by accessing your account online, calling us at 888-609-8910 or by using our paper withdrawal form.

 

*Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as applicable state and local income taxes.
**If withdrawals are not qualified, the deductions must be added back to Iowa taxable income. Adjusted annually for inflation.
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