What happens if I withdraw money for a non-eligible expense?

You’ll have to pay taxes on any non-eligible expense, plus a 10% penalty on the earnings portion of the withdrawal. A withdrawal used for a non-eligible expense, or for housing expenses even if they are qualified disability expenses, could affect your eligibility for Supplemental Security Income (SSI) benefits, Medicaid, or other much-needed benefits under federal or state programs, as could a withdrawal that is applied to a housing expense in any month after the month of the withdrawal.

Woman on computer with young boy

Sign up and start saving

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!

Create account

Have specific questions?

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.

Go to FAQ’s