1. Finally ABLE to Save: How ABLE Accounts are Changing Lives
Heather Sachs, National Down Syndrome Society
Adrian Forsythe, National Down Syndrome Society
Mary Morris, Virginia529 College Savings Plan

2. Agenda What is ABLE? Basic Mechanics of ABLE What’s Next for ABLE
Meet an ABLE Account Holder: Adrian Forsythe
Virginia’s ABLEnow Program: Presented by Mary Morris

3. What is ABLE?
The Stephen Beck, Jr. Achieving a Better Life Experience (ABLE) Act (PL ) amends the federal tax code to add Section 529A in order to: create a new option for eligible people with disabilities to save money in a tax-exempt account that may be used for qualified disability expenses while still keeping their eligibility for federal public benefits.

4. ABLE History Kitchen table idea from parents in Northern Virginia
Nine year massive cross-disability grassroots campaign (enacted December 19, 2014)
Social media, traditional media, change.org petition
In-person meetings with elected officials – advocates shared their stories
Most bipartisan bill in recent history – 85% of US Congress supported the ABLE Act
381 out of 435 in the US House of Representatives; 78 out of 100 in the US Senate

5. Basic Mechanics of ABLE
Only one account per eligible individual
Can open an account in ANY STATE ABLE PROGRAM
Only owner (or legal guardian) can open the account; “Designated Beneficiary” is the account owner
Can transfer account to immediate family member who is also an eligible individual
Funds can only be spent on “qualified disability expenses”
Account Caps
Total annual contributions = $14,000 (federal gift tax limit)
Maximum account balance = state 529 account limit
$100,000 = amount at which Supplemental Security Income (SSI) is suspended but not terminated (Medicaid not affected)

6. Eligibility for an ABLE Account
Age requirement: onset of disability before age 26; AND
Severity of disability:
Have been determined to meet the disability requirements for Supplemental Security Income (SSI) or Social Security Disability Income (SSDI), OR
OBTAIN a “disability certification”, including a physician’s diagnosis, that the individual meets criteria to be further established in regulations (essentially equal to Social Security level of disability – disability poses “marked and severe functional limitations”).

7. What is a “Disability Certification”?
A doctor’s note (or form) stating that your disability creates “marked and severe functional limitations” or blindness, and is likely to last for more than a year and/or result in death
You obtain the note from your doctor and then you KEEP THE NOTE IN YOUR OWN FILES
You DO need to certify under penalty of perjury that you have obtained this certification prior to opening the account; may need to recertify at some point
If you are already eligible for SSI or SSDI, then you do NOT need a separate disability certification

8. Qualified Disability Expenses
KEEP YOUR OWN RECEIPTS AND RECORDS!
Widely interpreted by US Treasury as virtually anything relating to the individual’s disability or blindness to enhance quality of life, health or independence, including:
Education, Housing, Transportation, Employment training and support, Assistive technology and personal support services, Health, prevention, and wellness, Financial management and administrative services, Legal fees, Funeral and burial expenses, Basic living expenses (very widely interpreted!)

9. Impact on Federal Benefits: SSI
Can accumulate more than $2,000 in assets without losing SSI or Medicaid benefits
Supplemental Security Income (SSI)
Assets up to $100,000 not counted “against” beneficiary for SSI eligibility or payments
After $100,000, SSI checks stop and eligibility is suspended (but not terminated)
Specific rules regarding use for housing expenses (rent) and deposit of earned income into ABLE account apply – see SSA’s Program Operations Manual (POMS) on ABLE

10. Impact on Federal Benefits: Medicaid
ABLE assets are disregarded in determining Medicaid eligibility
Medicaid benefits are NOT suspended if the ABLE account balance exceeds $100,000
Medicaid Payback: Any assets remaining in the ABLE account when a beneficiary dies may be used to reimburse a state for Medicaid payments made on behalf of the beneficiary after the creation of the ABLE account
All OUTSTANDING QUALIFIED DISABILITY EXPENSES WILL BE PAID OUT OF THE ABLE ACCOUNT FIRST
States may or may not exercise this right to reimbursement

11. Tax Treatment of ABLE Accounts
Contributions to an ABLE account are made with post-tax dollars; ABLE account earnings grow tax-free and qualified distributions are tax-exempt
Federal taxation: In general, ABLE programs are exempt from taxation. Distributions from ABLE accounts for qualified disability expenses are exempt from taxation.
State taxation: State tax consequences will vary.
ALL STATES HAVE DESIGNATED ABLE ACCOUNTS AS EXEMPT FROM STATE INCOME TAX
States with deductions for contributions to ABLE Accounts: Iowa, Maryland, Michigan, Missouri, Montana, Nebraska, Ohio, Oregon, South Carolina, Virginia, Wisconsin (out-of-state), Utah (credit)

12. Regular 529 Accounts vs. ABLE Accounts
529A ABLE Account
529 College Savings Account
Can have an unlimited amount of accounts in the beneficiary’s name
Anyone can open an account for the benefit of the beneficiary
Can only be used for qualified education-related expenses
Account holder (not the beneficiary) controls the funds
Limited to only one account per beneficiary
Only beneficiary or legal guardian/power of attorney can open account
Can be used for broad categories of qualified disability expenses
Account holder (beneficiary) controls the funds (subject to legal guardianship or power of attorney rules)

13. Special Needs Trusts vs. ABLE Accounts
Special Needs Trusts (SNTs)
Minimal start-up costs (administrative fees are under $50)
Controlled by account owner (or legal guardian); owner may contribute income
Onset of disability must have occurred prior to age 26
Annual contribution limit of $14,000; all balances up to $100,000 excluded from eligibility determinations for SSI & Medicaid; above $100,000, SSI suspended but Medicaid continues
Income is tax-free
Start-up costs can be high (over ($1,000 in legal fees) and potential trustee fees
Controlled by third party; owner cannot contribute income
No age restrictions for third party SNTs; first party SNT must be formed and funded prior to age 65
Contribution limitations: no limits on contributions or number of accounts; all balances excluded from eligibility determinations for SSI & Medicaid
Income is taxable at very high rates

14. State ABLE Legislation
47 states + DC have enacted their own versions of the ABLE Act.
States not on this list yet: Idaho, Mississippi, Wyoming
Not all states will create ABLE programs
YOU DO NOT HAVE TO WAIT FOR YOUR HOME STATE TO ESTABLISH AN ABLE PROGRAM – YOU ARE FREE TO SHOP AROUND AND OPEN AN ACCOUNT NOW!
Remember: only ONE account per eligible individual

15. ABLE Accounts are Available Now!
Programs that have launched:
Ohio – STABLE
Tennessee – ABLE TN
Nebraska - ENable
Florida – ABLE United (in-state residents only)
Michigan – MiABLE
Programs expected to launch soon: Virginia, Oregon, Vermont, Pennsylvania, Alaska, Illinois, Iowa, Kansas, Minnesota, Missouri, Nevada, New Jersey, North Carolina, Rhode Island

16. What’s Next for ABLE? Amendments to Federal ABLE Act
ALREADY PASSED – State residency requirement ELIMINATED in December 2015 (HR2029, SECTION 303) -- A qualified individual may now open an ABLE account in his/her own state or in another state.
PENDING BEFORE CONGRESS– 3 ABLE improvement bills introduced March 2016
ABLE to Work Act (HR 4795/S2702) – would increase annual contribution limit ($14,000) an additional $11,770 (tied to poverty level) for beneficiaries who are employed
ABLE Financial Planning Act (HR 4794/S2703) – would permit rollover from 529 to 529A account
ABLE Age Adjustment Act (S4813/S2704) – would increase age of onset from 26 to 46
Support Widespread Adoption of ABLE Programs/Launch & Promotion
ABLE Marketing & Education/Financial Literacy

17. Get Information & Join The Conversation
QUESTIONS? Contact Heather Sachs –
More information on ABLE:
NDSS
Facebook:
Twitter:
Instagram:
YouTube:
Pinterest:

18. Meet an ABLE Account Holder
Adrian Forsythe NDSS Advocacy Programs Assistant

19. About My ABLE account
Just like my brother!
Over $2,000 dollars without losing my government benefits (such as Medicaid).
I enrolled in the ABLE program in Nebraska – ENable

20. How do I use my account?
I can save up money for something BIG.
Or for work expenses.
I can track my salary at NDSS.
I don’t use my ABLE account for daily expenses.

21. How do I access my account?
First, I go to the website –
Second, I login with my username and password.
Third, I check my account to figure out:
what money goes in (deposits),
what money I spend (withdrawals) and
how much money I have left (balance).

22. Why ABLE is important to me
Not very good at keeping records!
ABLE makes me feel more independent, and I have to think more about how I spend money.
I am learning better how to keep records and accounts.
ABLE makes me prouder and more ambitious.
To all self-advocates: ABLE gives you control and makes you independent.

23. Mary Morris, CEO, Virginia529 College Savings Plan
George Mason State of the Art Conference on Postsecondary Education and Individuals with ID December 1, 2016
Mary Morris, CEO, Virginia529 College Savings Plan

24. Agenda ABLE Basics Three Things to Consider Stay Informed Questions?24

25. ABLE Basics
Who has heard of 25

26. What is ABLE?
ABLE accounts are new tax-advantaged savings accounts for eligible individuals with disabilities.
Save up to $14,000 a year without endangering eligibility for disability benefit programs. 
Result of the Stephen Beck, Jr. Achieving a Better Life Experience (ABLE) Act.
Virginia Governor McAuliffe, April 2015
President Obama, Dec. 2014
Photos: AutismSpeaks.org 26

27. What is ABLEnow?
ABLEnow℠ is the Virginia-sponsored ABLE savings program.
Nationwide enrollment opens in December 2016.
ABLEnow will be administered by Virginia529℠, the country’s largest college savings plan, which has an expanded mission to meet the needs of persons with disabilities.  27

28. https://vimeo.com/ABLEnow/introduction
ABLEnow video 28

29. Who is eligible?
An eligible individual is someone who developed the onset of their disability before age 26, and: Is entitled to Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) benefits based on blindness or disability. or Self-certifies that they have a qualifying disability diagnosis from a physician. 29

30. Doesn’t Impact Benefits
What are the benefits?
Flexible
Easy to manage, easy to contribute and easy to use. Open an account with no minimum balance. Pay for qualified expenses online or with the ABLEnow Debit Card.
Tax-Advantaged
Earnings grow free from federal taxes. In addition, some states may offer state tax incentives. In Virginia, earnings grow free from federal and state taxes. Virginia also offers an annual state income tax deduction of up to $2,000 per contributor for contributions to an ABLEnow account.
Doesn’t Impact Benefits
Generally, funds in an ABLEnow account are disregarded when determining eligibility for certain means-tested benefits programs. See able-now.com for specific rules, limitations and exceptions. 30

31. How can I use the money?
ABLEnow accounts may be used to pay a variety of expenses related to maintaining health, independence and quality of life. 31

32. Three Things to Consider32

33. 1. Identify your savings needs
Consider your current expenses.
Consider your goals. Make a list of short-term and longer-term needs that may require financial assistance.
Consider how an ABLEnow account may work with sources of income and other savings you may have. 33

34. 2. Identify potential contributions
Contribute up to $14,000 a year in your ABLEnow account.
Anyone may contribute to an ABLEnow account—the account owner, family or friends.
Virginia offers an annual state income tax deduction of up to $2,000 per contributor for contributions to an ABLEnow account. 34

35. 3. Compare ABLE programs When ABLEnow opens in December 2016, it will:
Feature competitive, low fees
Be easy to contribute and manage
Be easy to use to pay expenses
Offer an FDIC insured Deposit Account feature AND
Offer four investment options after Deposit Account threshold is met
Have state income tax advantages for Virginians
Easy to open
Online
Easy enrollment application
Low minimum contribution
Easy to use
Pay qualified expenses with your ABLEnow Visa debit card or online transfer
Keep records in your online customer portal, access anytime
Easy to contribute
Contribute via online portal
Mail in a check
Share a website with family and friends who want to contribute to your account 35

36. Stay Informed 36

37. Receive & Share Information
Visit able-now.com and subscribe to updates.
on Facebook and Twitter.
Help to spread the word! Please share information about ABLEnow with friends, family and community groups.
Easy to open
Online
Easy enrollment application
Low minimum contribution
Easy to use
Pay qualified expenses with your ABLEnow Visa debit card or online transfer
Keep records in your online customer portal, access anytime
Easy to contribute
Contribute via online portal
Mail in a check
Share a website with family and friends who want to contribute to your account 37

38. Questions? Online: able-now.com Toll Free: 1-844-NOW-ABLE
The material in this presentation has been prepared by ABLEnow and is general information about ABLEnow current as of the date of this presentation. The information is given in summary form and does not purport to be complete.
Call NOW-ABLE or visit able-now.com to obtain information on the program. For non-Virginia residents: other states may sponsor an ABLE plan that offers tax or other benefits not available through ABLEnow. © 2016 Virginia College Savings Plan. All Rights Reserved. 38