1. Enable Alabama

2. What is ABLE: an Overview
Became federal law in December 2014
Amends Section 529 of IRS Service Code of 1986 (529A)
Authorized state-sponsored, tax-advantaged SAVINGS PROGRAMS for Qualified Disability Expenses without impacting eligibility for resource-based public benefits
Permits Eligible Individuals to save more than $2,000 in assets in their name in ABLE Accounts
Allows for contributions of up to $14,000 per calendar year from all combined sources
Designed to supplement not supplant SSI and Medicaid benefits
In December 2014, the Achieving a Better Life Experience (ABLE) Act was signed into law authorizing individuals with disabilities to open tax-exempt savings ABLE accounts to save for disability-related expenses without impacting eligibility for dependent public benefits such as SSI (Supplemental Security Income), SNAP (Supplemental Nutrition Assistance Program), or Medicaid. The Act recognizes that to be eligible for some public benefits, individuals with disabilities cannot have more than $2,000 in assets (cash, savings) in their name; this Act provides an exception to the $2,000 limit if you save in an ABLE account.

3. Enable Savings Plan Alabama
Available for Eligible Individuals Nationwide
Allowable under the Alabama ABLE Act signed June 2015
Young Boozer, Alabama State Treasurer, contracted with the Nebraska State Treasurer to create Enable Savings Plan Alabama
Organizing Structure:
The Nebraska Achieving a Better Life Experience Program Trust Issuer
Don Stenberg, Nebraska State Treasurer Trustee
Nebraska Investment Council Investment Oversight
First National Bank of Omaha Program Manager

4. Account Ownership

5. Eligibility
An Eligible Individual is defined as someone of any age—children, transition-aged youth, and adults—
who experiences a disability with onset prior to age 26
AND who receives SSI or SSDI
OR who has a certification from a physician indicating he/she has a marked or severe functional limitation, which is expected to result in death or has lasted or can be expected to last for a continuous period of not less than 12 months
Eligible Individuals or their authorized individual will self-certify the disability and basis of eligibility when opening an account.

6. Account Ownership
An account owner can only have one ABLE account in any ABLE plan nationwide
The Eligible Individual is the account owner and beneficiary of the account assets at all times
Other individuals can open and maintain the account for the benefit of the account owner but have no beneficial interest in the account
If the account owner is a minor, a parent or legal guardian will open and manage the account
If the account owner is an adult, only the person with financial authority can open and manage the account
Conservator
Financial Power of Attorney
An eligible individual can open only one ABLE account nationwide. The eligible individual is the account owner and the beneficiary of account’s assets.
• There is no age limit to open or use account assets.
• Individuals other than the account owner can administer the account for the benefit of the account owner, but that individual has no beneficial interest in the account.
If the account owner is a minor, a parent, legal guardian or custodian must open and manage the account
If an individual has a legally appointed conservator or guardian, that person must open and manage the account

7. Account Ownership
If the account owner receives Medicaid, assets in the account may be subject to Medicaid reimbursement upon death:
Assets are available after any outstanding payments for Qualified Disability Expenses, including funeral costs, are resolved
Includes assets up to the amount Medicaid paid for services—net any premiums—while the Enable account was open
If there are assets left over after Medicaid or if the account owner is not a Medicaid recipient, assets are subject to probate
When an account is opened, the account owner will certify he/she will inform the Plan if no longer an Eligible Individual.
The account can remain open under certain restrictions:
Contributions cannot be made until the account owner is eligible again
Expenses incurred during ineligibility are not a Qualified Disability Expense and are subject to federal and state income tax and a 10% additional federal tax
• When an account owner dies, his or her state of residency may receive reimbursement for the amount paid toward the account owner's Medicaid costs, net any premiums up to the balance of the account
• If the account owner is no longer an eligible individual, the ABLE account can remain open subject to certain restrictions:
­Beginning the first day of the taxable year following the taxable year in which the account owner ceased to be an eligible individual, no contributions can be accepted. If the account owner again becomes eligible, additional contributions may be accepted.
During time account owner is not eligible, expenses are not qualified and, therefore, any withdrawal is considered a non-qualified withdrawal, subject to tax and a 10% federal penalty. If the account owner again becomes eligible, withdrawals for qualified disability expenses can occur.

8. Qualified Disability Expenses
An account owner can save for a wide range of expenses and pay for those expenses by withdrawing from the Enable Savings Plan.
Education
Transportation
Housing
Employment training and supports
Assistive technology and related services
Personal support services
Financial management and administrative services
Legal fees and expenses for oversight and monitoring
End of life expenses
Health, Prevention and Wellness
Other expenses to enhance the account owner’s quality of life
Housing includes rent, mortgage, utilities, property taxes, property insurance and garbage removal.

9. Impact to Resource-Based Benefits

10. Impact to Benefits: SSI Exclusions
Resource exclusions:
First $100,000 of assets in an Enable account are exempt from the $2,000 resource limit
Retained non-housing Qualified Disability Expenses:
The account remains active
The withdrawal is unspent
The withdrawal is identifiable
The withdrawal is intended for future non-housing expense
Retained housing Qualified Disability Expenses used in the same calendar month
Income exclusions:
Contributions
Wages are still subject to SSI income calculation
Account earnings
Account withdrawals
Social Security pays SSI benefits to individuals with disabilities with low income and few resources
EXAMPLES:
1. Eric takes a distribution of $500 from his ABLE account in June 2016 to pay for a health-related QDE. His health-related expense is not due until September, so Eric deposits the distribution into his checking account in June. The distribution is not income in June. Eric maintains his ABLE account at all relevant times, and the distribution is both unspent and identifiable until Eric pays his health-related expense in September. We therefore exclude the $500 from Eric's countable resources in July, August, and September.
2. Fred takes a distribution of $1,500 from his ABLE account in September 2016 to buy a QDE - a wheelchair. The wheelchair is an excluded resource in October and continuing, because it is an individual’s personal property required for a medical condition.

11. Impact to Benefits: SSI Inclusions
Resource Inclusions:
Any amount exceeding $100,000 in an Enable account is included as a countable resource
SSI cash benefits will be suspended when the account owner exceeds resource limit of $2,000
Benefits are suspended without time limit
Benefits are reinstated when account owner reports assets below resource limit and is otherwise eligible
Suspension of SSI cash benefit due to Enable account will not impact Medicaid eligibility
Suspension of SSI cash benefit due to other resource (ex: Non-ABLE account) may impact Medicaid eligibility
Retained housing Qualified Disability Expense used in months following receipt
Enable will notify account owner when balance nears SSI impact limit ($100,000)
EXAMPLES
Paul is the designated beneficiary of an ABLE account with a balance as of $101,000 on the first of the month. Paul's only other countable resource is a checking account with a balance of $1,500. Paul’s countable resources are $2,500 and therefore exceed the SSI resource limit. However, since Paul's ABLE account balance is causing him to exceed the resource limit (i.e., his countable resources other than the ABLE account are less than $2,000), we suspend Paul’s SSI eligibility and stop his cash benefits, but he retains eligibility for Medicaid.
Christine is the designated beneficiary of an ABLE account with a balance as of the $101,000 on the first of the month. Christine's only other countable resource is a checking account with a balance of $3,000. Christine's countable resources are $4,000 and therefore exceed the SSI resource limit. However, because her ABLE account balance is not the cause of her excess resources (i.e., her countable resources other than the ABLE account are more than $2,000), the special rule does not apply, and Christine is not eligible for SSI because of excess resources. We suspend Christine’s SSI benefits using payment status N04, and her Medicaid benefits stop.
Sam takes a distribution of $25,000 from his ABLE account to modify a specially equipped van in May. He pays a $10,000 deposit. While waiting for delivery of the van, Sam takes a trip to a local casino in July where he loses $1,000 of his ABLE distribution gambling. The $1,000 he lost gambling is a countable resource in July. The other $14,000 Sam retains is an excluded resource
In June, Jennifer takes a $7,000 distribution from her ABLE account to pay her college tuition - a QDE. Her tuition payment is due in September. However, she has to make a $750 advance rent payment to her landlord for her college apartment in August. She uses some of the distribution she took in June to make the rent payment – a housing-related QDE. The $750 is a countable resource in August. We exclude the remaining $6,250 of the retained distribution
In June, Jennifer takes a $7,000 distribution from her ABLE account to pay her college tuition - a QDE. Her tuition payment is due in September. In August, Jennifer gets a job offer and decides not to return to school. Since she no longer intends to use it for tuition, the $7,000 becomes a countable resource in September unless Jennifer redesignates it for another QDE or returns the funds to her ABLE account prior to September.

12. Impact to Benefits: Examples
Example 1: Amy takes a distribution of $500 from her ABLE account in May to pay her rent for June. She deposits the $500 into her checking account in May, withdraws $500 in cash on June 3, and pays her landlord. This distribution is a housing-related QDE and part of her checking account balance June 1, which makes it a countable resource for the month of June.
Example 2: Paul is the designated beneficiary of an ABLE account with a balance of $101,000 on the first of the month. Paul's only other countable resource is a checking account with a balance of $1,500. Paul’s countable resources are $2,500 and therefore exceed the SSI resource limit. However, since Paul's ABLE account balance is causing him to exceed the resource limit (i.e., his countable resources other than the ABLE account are less than $2,000), we suspend Paul’s SSI eligibility and stop his cash benefits, but he retains eligibility for Medicaid.
Example 3: Christine is the designated beneficiary of an ABLE account with a balance of $101,000 on the first of the month. Christine's only other countable resource is a checking account with a balance of $3,000. Christine's countable resources are $4,000 and therefore exceed the SSI resource limit. However, because her ABLE account balance is not the cause of her excess resources (i.e., her countable resources other than the ABLE account are more than $2,000), the special rule does not apply, and Christine is not eligible for SSI because of excess resources. We suspend Christine’s SSI benefits using payment status N04, and her Medicaid benefits stop.
*Source: Social Security Administration Program Operations Manual Systems TN-73 (03-16)
Eric takes a distribution of $500 from his ABLE account in June 2016 to pay for a health-related QDE. His health-related expense is not due until September, so Eric deposits the distribution into his checking account in June. The distribution is not income in June. Eric maintains his ABLE account at all relevant times, and the distribution is both unspent and identifiable until Eric pays his health-related expense in September. We therefore exclude the $500 from Eric's countable resources in July, August, and September.

13. Impact to Benefits: Alabama Medicaid
Assets in an Enable account are an excluded resource for Medicaid
Includes Childhood Disability Benefits and Waiver recipients
Accounts owners will report assets in Enable accounts to Medicaid, at minimum annually
Will likely require a copy of Enable statement
Wages are subject to existing Medicaid income guidelines
Note: Center for Medicare and Medicaid Services (CMS) has not issued official guidance to state Medicaid offices. Consider contacting Alabama Medicaid to discuss any possible implications.
Social Security pays SSI benefits to individuals with disabilities with low income and few resources
EXAMPLES:
1. Eric takes a distribution of $500 from his ABLE account in June 2016 to pay for a health-related QDE. His health-related expense is not due until September, so Eric deposits the distribution into his checking account in June. The distribution is not income in June. Eric maintains his ABLE account at all relevant times, and the distribution is both unspent and identifiable until Eric pays his health-related expense in September. We therefore exclude the $500 from Eric's countable resources in July, August, and September.
2. Fred takes a distribution of $1,500 from his ABLE account in September 2016 to buy a QDE - a wheelchair. The wheelchair is an excluded resource in October and continuing, because it is an individual’s personal property required for a medical condition.

14. Enable Account Features

15. Contributions Anyone can contribute to an account
Account owner
Family & Friends
Companies
Trusts & Inheritance
Due to the ABLE Act, the Enable Savings Plan limits the amount that can be contributed from all sources to $14,000 per calendar year.
Contribution Options:
Check
AIP or systematic deposits
EFT
Payroll Deduction
Anyone can contribute to an account – the eligible individual, family, friends, a trust or estate, partnership, association, company or a corporation. No matter who contributes, the assets in the account belong to the account owner. The ABLE Act places limits on the amount that can be contributed annually and the total account balance.
• All contributions into an ABLE account, regardless of who made the contribution, cannot exceed $14,000 per calendar year.
• Contributions to an account are made with after-tax dollars. The earnings on the contributions grow tax-free while invested and tax-free if withdrawn for qualified expenses. As a result your money may grow more quickly than assets in a taxable account.
• Contributions into an ABLE account will not be accepted when the total account balance (contributions plus income) when added to the new contribution exceeds the Enable Plan’s maximum contribution limit of $360,000. The balance, however, can grow beyond the limit.
Contributions must be in US dollars and cash is not accepted.
Contributions can be made by check or electronic funds transfer from a personal bank account. You can also pre-schedule contributions into your account: AIP (automatic payment from bank account) or payroll direct deposit.

16. Withdrawals
All withdrawals are considered Qualified Disability Expenses.
Check to account owner
Check to 3rd party company
EFT to account owner’s bank account
Systematic withdrawals
Debit card and check writing Checking Option Only
Withdrawing is simple and flexible.
Money withdrawn from the Growth, Moderate or Conservative or the Bank Savings Option can be sent:
By check to you, the account owner or to a company;
Electronically to your personal bank account on file with the Plan; or
You can set up prescheduled withdrawals to send money systematically to an individual or company.

17. Tax Advantages
Earnings are tax-deferred and tax-free if used for Qualified Disability Expenses
Earnings from withdrawals used on non-Qualified Disability Expenses are subject to federal and state income tax and additional 10% federal tax
Contributions are not deductible from Alabama state income tax

18. Investment Options

19. Enable Investment Options
Three Target-Risk Investments Options
Low-cost Vanguard mutual funds
Investment are not FDIC-insured and do not offer bank, state or federal guarantees
May lose value
Time horizon: more than 5 years
Bank Savings Option
Provides FDIC-Insurance for the investment
Guaranteed return
Stability of knowing the principal investment may not lose its value
Time horizon: less than 5 years
Checking Option
Offers check or debit card withdrawals
Time horizon: short term
The Enable Savings Plan offers a simple selection of Investment Options to pick from depending on what you are saving for and how long you want to invest.
We have 3 target risk options, a bank savings option and now a checking option. The checking investment option earns interest. To learn more visit 53.com. The bank may change the interest rate and annual percentage yield at any time without notice. Your interest begins to accrue not later than the business day we receive credit for the deposit of non-cash items. Interest on your account will be compounded continuously and credited monthly. The bank uses the daily balance method to calculate interest on your account. This method applies to a daily periodic rate to the balance in your account each day. When your account is closed, you will forfeit any accrued interest.
Mutual Fund Investment Account Options (generally for investments longer than 5 years)
The three Options, Growth, Moderate and Conservative, each will invest a different percentage of your assets into low-cost index Vanguard funds. The percentage is determined by our professional investment manager to balance between different asset classes – equity, fixed income or cash equivalents – in an effort to meet your investment goals. Our professional investment manager continuously reviews the investment to ensure that your investment continues to align with your time frame and risk tolerance.
Fixed income=bond
Equity = stock market
FDIC-Insured Bank Savings Option
This investment option offers a guaranteed return on your investment and the stability of principal. This option may be appropriate if you want the security of a safe investment and your time horizon is between 3-5 years.
FDC-Insured Checking Option
The checking investment option earns interest. To learn more visit 53.com. The bank may change the interest rate and annual percentage yield at any time without notice. Your interest begins to accrue not later than the business day we receive credit for the deposit of non-cash items. Interest on your account will be compounded continuously and credited monthly. The bank uses the daily balance method to calculate interest on your account. This method applies to a daily periodic rate to the balance in your account each day. When your account is closed, you will forfeit any accrued interest.

20. Enable Investment Options
When an account is opened, the account owner selects the investment options for the initial contribution
Account owner can select multiple options
Subsequent contributions can be directed to any investment option
Contributions not directed to a specific investment option will be invested according to the percent allocations chosen when the account was open.
Investment changes permitted only twice per year
You must open an Enable account online or by completing and mailing an Enrollment Form to the Enable Savings Plan. You can’t walk into a bank to open the Checking Option.
When you open an Enable account, you can opt to invest in the Checking Option alone, or in combination with any other Investment Option in the Plan.
Account Owners with a co-guardian are unable to utilize the Checking Option.
Once your money is invested in an investment option, the money can only be moved to a new investment option twice per year. This is why selecting how new contributions are invested can be so important.

21. Enable Target-Risk Options
Growth: You want the potential to grow your money and you can tolerate the market fluctuations and risk. The time horizon is more than 10 years.
Moderate: You want some growth but desire that growth with lower risk and fluctuation. The time horizon is more than 5 years.
Conservative: Your primary investment objective is low risk with a minimal potential risk for loss. The time horizon is less than 5 years.
COLOR KEY:
Navy: domestic equity
Blue: fixed income
Green: international equity
Purple: cash equivalents
Domestic Equity
International Equity
Fixed Income
Cash Equivalents

22. Account Fees Annual Account Fee Total Asset-Based Fees
Quarterly charge per account of $11.25 ($45 annually) regardless of the investment option or the number of investment options
Total Asset-Based Fees
Range from 0.50% to 0.56%
Includes amount charged by the underlying fund and the fee paid to manage the Plan
This fee is not deducted from your account
Not applicable to Checking Option
Checking Option Fees
Checkbook Fee: $6 for box of 50 checks
You will need a minimum of $25 invested in the Checking Options to order Enable checks
You can order checks from a vendor of your choice
Monthly Statement Fee: $2
Waived if you select e-delivery or maintain a balance of $250 in Checking Option
No other fees – no fees to enroll, withdraw, change investment options, or transact online

23. Account Fees Account Minimums Account Balance Limit
Initial: $50, reduced to $25 with AIP or payroll deduction at enrollment
Subsequent: $25, waived with AIP or payroll deduction
$50 minimum account balance
Account Balance Limit
Total account balance limit is $360,000.
Contributions will not be accepted once the total account balance limit is met.
The total account balance can continue to grow in response to market changes.

24. Connect with Enable Alabama
EnableAL.com
Visit the website and resource page
Keep up with news and events
Join the list
Facebook.com/EnableSavingsPlanAlabama
Share ideas
Learn from experts
Customer Service Center

25. Open an Account Read the Program Disclosure Statement
Complete enrollment in 6 steps:
online if account owner does not have an authorized individual
via paper form if account owner has an authorized individual
Answer questions about the account owner
SSN or TIN
DOB
Address
Answer questions about the authorized individual
Select investment options
Select funding method
Select delivery options
Review and submit

26. Disclosures
Enable Savings Plan Alabama ("Enable Alabama" or the "Plan") is sponsored by the State of Nebraska, offered by the State of Alabama, and administered by the Nebraska State Treasurer. The State of Alabama, through the ABLE Program Board, contracted with the Nebraska State Treasurer to participate in and create Enable Savings Plan Alabama which is part of The Nebraska Achieving a Better Life Experience Program Trust (the "Trust") that offers a series of investment portfolios. The Plan is intended to operate as a qualified ABLE program to be used only to save for qualified disability expenses, pursuant to the Achieving a Better Life Experience Act of 2014 and Section 529A of the U.S. Internal Revenue Code. Investments are not FDIC insured*. No Bank, State or Federal Guarantee. May Lose Value, except the Bank Savings and Checking Investment Options