As long as the money in your Alabama ABLE account is used for eligible expenses, it won’t be counted as income for your state or federal taxes.
If a purchase doesn’t qualify as an eligible expense, you’ll have to pay income taxes and a 10% penalty on the amount. If you want to know more about the IRS regulations, you can find info here.
Once you are ready to open an account, you can do so here online. When opening an Alabama ABLE account, be sure to have information about the beneficiary, qualifying disability, and how the ABLE account will be funded. Learn more about who can open an account and all the benefits of having one — or if you’re ready to get started, open one today!
Here are a few ways to get answers: Give us a call Monday through Friday, at 1-833-711-2253 from 8am-7pm CT, use our Live Chat feature in the bottom right of your screen (when available), or browse Frequently Asked Questions.
Individuals with speech or hearing disabilities may dial 711 to access Telecommunications Relay Service (TRS) from a telephone or TTY.
