FAQs
Answers at your fingertips
You can scroll through the FAQs or click on a category below to scroll to that section of the page.
- About ABLE
- ALR
- Benefits
- Contributions
- Eligibility
- Fees
- General
- Gifting
- How the Account Works
- Linking Bank Accounts
- Opening an Account
- Prepaid Card
- Qualified Expenses
- Successors and Estates
- Tax Benefits
- What is ABLE to Work?
- The ABLE to Work Act allows beneficiaries who are employed to contribute an amount equal to their current year’s gross income (up to a maximum of $14,580 in 2024) each year to their ABLE accounts in addition to the annual standard contribution limit of $18,000. You can make an ABLE to Work... Read more
- Can I open and/or manage more than one Alabama ABLE account?
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Each beneficiary can have only one ABLE account open at a time, but it can be connected to one or more bank accounts.
An Authorized Legal Representative (ALR) can open and manage multiple accounts for beneficiaries.
- Can wages or other income be deposited into an ABLE account?
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Yes, any income can be deposited however total annual deposits may not exceed $18,000 in calendar year 2024.
- What are the lifetime contribution limits?
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Contributions can be given to an Alabama ABLE account up to a maximum account balance of $475,000.
- Can an ABLE account holder put their Social Security benefits (SSI or SSDI) into their ABLE account?
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Yes, a beneficiary can put their Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), etc. benefits into their ABLE account up to the annual contribution limit of $18,000 for 2024.
- Who can contribute to an ABLE account?
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Anyone! A family member, friend, or you, the person with a disability, may contribute to an ABLE account.
- What does the ABLE Act do?
- The Federal ABLE Act gives states the opportunity to develop tax-advantaged savings programs for eligible people with disabilities. These saving programs provide the opportunity for people with disabilities to maintain eligibility for federal and state benefits while saving money to cover qualified... Read more
- What is the maximum annual contribution?
- The total annual contributions by you, family and/or friends for calendar year 2024 are $18,000. This limit is tied to the federal gift tax exclusion. In future years, the IRS may change the annual amount that can be excluded from federal gift taxes, so you should consult with your tax advisor for... Read more
- Does the Medicaid recapture of funds in an ABLE account as described in the Federal ABLE ACT known as “clawback” apply to Alabama ABLE accounts?
- As established by the Federal ABLE Act, funds remaining in the account upon the beneficiary’s death, after final expenses are paid, may be subject to reimbursement to the state for Medicaid-related services. Medicaid must initiate reimbursement. The amount of any Medicaid payback is calculated... Read more
- ABLE’s definition of qualifying disability expenses includes “education.” Can I roll my 529 account into an ABLE account?
- Assets from a 529 account can be rolled over into an ABLE account, though amounts to be rolled over are subject to the $17,000 annual contribution limit. Current federal law requires such rollovers to be completed by December 31, 2025. To make a direct rollover from a 529 account, the ALR or... Read more
