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Can I open and/or manage more than one Alabama ABLE account?

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.

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
How can I use the money in my account?

You can withdraw money from the account and use it for eligible qualified disability expenses which includes most costs associated with living with a disability.

See the list of approved categories for more details.

What’s the difference between an ABLE account and a Special Needs Trust?
Although both can be established to enable a person with a disability to acquire assets without jeopardizing benefits, it’s important to know that an ABLE account allows the person with the disability to open and manage the account on his/her own. The ABLE account must be used for any qualifying... Read more
How do I manage different bank accounts with multiple beneficiaries?

If you are managing ABLE accounts for more than one beneficiary, you can use the same banking information on multiple accounts. The bank account has to be added to each plan account individually.

What happens to the account when the beneficiary turns 65?

Nothing changes to the ABLE account when the person turns 65.

Is there a penalty for closing an ABLE account?

If you do not spend down the account on qualified disability expenses, you do pay a penalty at the time of closing out the account. Please see the Alabama ABLE Plan Disclosure Booklet for complete information on closing an ABLE account.

What is the fee structure for the Alabama ABLE accounts?
The annual Account Maintenance Fee is $35 (assessed $8.75 quarterly). There is no enrollment, investment change, transfer or distribution fee. The Investment option cost range of 0.30%-0.34% includes a .30% program management fee to cover administrative costs of overseeing, distributing and... Read more
Can my ABLE account move from one state to another?

Yes, you can choose to roll over your account from one state’s program to another.