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Qualified Expenses

What are Qualified Disability Expenses?

These are ANY expenses that are incurred as a result of living with a disability and are intended to improve your quality of life.

Qualified expenses include, but are not limited to:

  • Education
  • Health and wellness
  • Housing
  • Food
  • Transportation
  • Legal fees
  • Financial management
  • Employment training and support
  • Assistive technology
  • Personal support services
  • Oversight and monitoring
  • Funeral and burial expenses
  • Basic living expenses.

Tracking your qualified withdrawals:

At the time of withdrawal, you do not need to prove that the withdrawal is for a qualified disability expense. Annually, IAble will report the total amount of your withdrawals to the IRS and the date and amount of each withdrawal to the Social Security Administration. In the event that either entity wants to verify the expenses, it's recommended that you keep detailed records. For an optional log to assist in the tracking of disability-related expenses, visit the Qualified Expenses Withdrawal Log page.

When savings are used for non-qualified expenses:

The earnings portion of the withdrawal will be treated as income, so it will be taxed at your tax rate, and will be subject to a 10% federal tax penalty and applicable state taxes.

For more information about qualified expenses, please refer to our Program Description.

Program Description

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