1. ABLE United ABLE Overview Jenn Sikora ABLE United Brand Ambassador
Hello and welcome to ABLE United. . I want to thank you for taking time this afternoon to attend this overview presentation and training. ABLE United is administratively housed under the Florida Prepaid College Board. The Florida legislature created the Florida Prepaid College Board in 1987 to provide Florida families with an affordable way to save for their children’s future college education The first Florida Prepaid College Plans were sold in 1988, in 2002 Florida Prepaid added 529 Savings Plan. Over 1 million families have purchased prepaid plans and Prepaid manages over 12 billion dollars on behalf of these families. All this to say, that Florida Prepaid has a long history in the State of Florida and has established itself as the largest prepaid program in the Nation. It now is in charge of managing its newest program, ABLE United.
The goal of today’s training is to thoroughly equip you with the information you need in helping the individuals you serve enroll in the ABLE United program.

2. ABLE Accounts
Before we move forward on our training on ABLE United, I would like to get a sense of how familiar everyone is with the ABLE United program. I’m going to put up poll question to gauge everyone’s familiarity. This ranges from not familiar at all, that is this is first time you heard about ABLE United. to Very familiar you have clients you serve who have accounts or maybe you have seen us at Family Café or other trainings. This is the first of several polls tonight we will have.

3. What is ABLE? Achieving a Better Life Experience.
The Stephen Beck, Jr. Achieving a Better Life Experience Act encourages individuals with disabilities to save after tax dollars to support health, independence, and quality of life.
Added a new section to the Internal Revenue Code, Section 529A.
In July 2015, Florida created a not-for-profit and direct support organization of the Florida Prepaid College Board to administer Florida's ABLE Program.
ABLE United launched July 1, 2016.
What is ABLE. ABLE is an acronym for “Achieving a Better Life Experience”. It started over 12 years ago when a group of families sat around a kitchen table to discuss how they could save for their child with a disability without negatively impacting their future if they were to require federal benefits, such as Medicaid and supplemental security income. This reality came in December 2014 when The Stephen Beck Jr ABLE act passed federally and was signed into law. This law added a new section to the internal revenue code, section 529A. The law allowed states to open ABLE programs to encourage individuals with disabilities and their families to save after tax dollars to support the health, independence, and quality of life of the person with a disability. It enjoys the same tax benefits as 529 college savings plans offer with some additional unique benefits specifically for individuals with disabilities.
In 2015 Florida passed it’s own ABLE legislation to allow Florida to create an ABLE program. In July 2016 Florida’s ABLE Program which is called ABLE United, launched. Since it’s launch 1,500 Floridians have opened ABLE United accounts.

4. ABLE Accounts Save Like Never Before
A tax-free savings and investment account established to support disability expenses while maintaining government benefits.
Save while maintaining benefits
Save with the help from family & friends
Save tax-free for future expenses
Save on time – open in 15 minutes
ABLE United now allows for the ability to Save Like Never Before”. The reason being is that before the ABLE act passed there wasn’t a financial tool as flexible, as inexpensive, and as powerful as an ABLE account. We will be covering today a range of topics on how ABLE United accounts can help individuals experience tax-free growth in an investment account and doing so while maintain eligibility for government benefits. We will discuss how ABLE accounts work with government benefits, how family and friends can help save and it not count as income to the individual, the overall purpose of saving, and how quick and easy it is to open an account. And how these types accounts can truly make dreams come true.
It is important to note that this presentation is for educational and informational purposes only and should not be considered financial, tax, or legal advice.
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5. Why an ABLE account? Save for future qualified disability expenses.
Qualified disability expenses, which include “living expenses,” are not required to be medically necessary or to be limited for the sole benefit of the individual with a disability.
Why an ABLE account? For what purpose are individuals saving for a better life experience. ABLE United accounts are to be used to help pay for future expenses that relate to the persons disability and support the individuals health, independence or quality of life. These types of expenditures are referred to as qualified disability expenses. These expenses include health, education, housing, transportation, employment training and support, funeral and burial and even basic living expenses like food. Also, the expenses do not have to be medically necessary.
We often receive questions on who makes the determination if an expense is qualified or not. The individual or the person who administratively responsible for the account would need to keep necessary documentation that if the IRS or if you are receiving SSI Social security asked they could show that the expense relates to the persons disability and helps improve their health, independence or quality of life. Please note that the IRS has stated that the expenses categories should be construed broadly. The only example they provided in the treasury regulations was the use of a cell phone including the cell phone plan for someone who is autistic who needs a cell phone to help communicate and navigate.
As you can see, ABLE accounts can be used for just about anything that could be justified. Most likely gambling, alcohol, some forms of entertainment, and giving funds would be considered a non qualified disability expense.
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6. Eligibility for Florida’s ABLE Program
A Florida resident who is blind or has a disability with onset prior to age 26 and meets the severity requirements for Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI).
Current age, income, assets or receipt of government benefits are not considered.
Requirements:
Florida resident
Onset of the disability prior to age 26
The disability is “severe”
Now that we discussed what ABLE is and what an ABLE United account could be used for, let’s discuss Who is eligible. There are three eligibility requirements for ABLE United. First, the individual with a disability must be a Florida Resident. Simply put, they have to live and treat Florida as their permanent home. Residency is only a requirement when enrolling. Once a person has enrolled they can move out of the state and still keep their ABLE account. At this time there is no documentation required to confirm an individuals residency status.
The next two requirements are true for ALL ABLE programs as prescribed in the internal revenue code. First the individual’s disability had to have an onset prior to age 26, Which basically means that the disability was diagnosed as having occurred prior to age 26. Next the disability has to be severe. What does it mean the disability has to be serve?
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7. Disability No approval process or document submission.
If an individual is not receiving SSDI or SSI, then self-certify that you have a:
Diagnosis of a physical or mental impairment before age 26
“Marked and severe functional limitations”
Expected to last for at least 12 months
A qualifying disability means an individual who is entitled to benefits based on blindness or disability under Title 2 (Social Security Disability Insurance which is an earned program based on work history) or Title 16 of the Social Security Act (Supplemental Security Income)
If an individuals with a disability is not currently receiving one of these benefits, they must meet the ‘‘marked and severe functional limitations’’ standard of disability in the Social Security Act for children claiming benefits under the Supplemental Security Income program, but without regard to the age of the individual. Additionally this disability is expected to last at least 12 months, or result in death. The Treasury Department and the IRS have concluded that a certification under penalties of perjury that the individual (or the individual’s agent under a power of attorney or a parent or legal guardian of the individual) has a signed physician’s diagnosis, and that the signed diagnosis will be retained and provided to the ABLE program or the IRS upon request. This self-certification under penalties of perjury is adequate to satisfy the disability requirement.
What this basically means if an individual had a disability diagnosed as having occurred prior to age 26, and if they receive SSI or Social security disability (SSDI) they qualify. Most likely if they are receiving iBudget Waiver funding they meet this qualification. So what information is needed if the individual is not receiving social security. They would need to Self certify that they have a diagnosis from your doctor that meets the severity requirements for the child standard of Social security and will be required to submit a date of diagnosis along with some physician contact information.
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8. Ownership
The individual with a disability (Beneficiary) is the owner of the ABLE account
Another person may assist in opening or maintaining the ABLE account.
One ABLE account nationwide
Accessed through secure website
For the benefit of the individual with a disability
Also unique to ABLE accounts compared to other financial products, such as 3rd party Special Needs trusts, the individual with a disability is the owner of the ABLE account. However another person may assist in opening the account or maintain the ABLE account.
The beneficiary can maintain their own account, however, a parent, legal guardian, or someone who has a power of attorney allowing them to open the ABLE account on their behalf, can administer the account. Regardless of who the administrator of the account is, the individual with the disability also known as the beneficiary owns the account.
You can only have one ABLE account nationwide which is different than most other financial products such as checking and savings accounts
ABLE United accounts are accessed completely online. Enrollment, contributions, withdrawals, adding a new bank, checking account balances, or even setting up an Egifting page is done all online. You can not take the individual you serve to their local bank to open or manage the account. They have to do it online. Or they can call customer service for assistance.
Remember….ABLE accounts are for the benefit of the individual with a disability as they can used funds in the account for a variety of expenditures to help them achieve a better life experience. .
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9. What if the Beneficiary passes away?
The individual with a disability is the owner of the ABLE account
All amounts remaining in the ABLE account are includible in their gross estate
If Beneficiary received Medicaid, Medicaid may make a claim on the account
Only for services rendered after account opened
Outstanding qualified disability expenses paid first
Funeral and Burial
Save without losing Medicaid
I hate to be the bearer of bad news, but statistics show that 10 out of every 10 individuals will eventually die. So what happens to the account if the owner passes away. We have account holders that are in their 80’s!
Generally funds remaining in the ABLE account are includible in their gross estate for purposes of the estate tax.
If the beneficiary or, owner received Medicaid, Medicaid may make a claim on the account. But with some exceptions. First Only for Medicaid services paid for after the account was opened. Outstanding qualified disability expenses paid first. This includes outstanding legal fees, possibly a mortgage or other housing expenses. Also funeral & burial expenses :funeral and burial costs range from a few thousand to over 10,000.
Remember one of the key benefits of this account is to be able to save more than $2,000 Medicaid limit and still keep Medicaid
If the individual was a self administrating beneficiary, which means they opened their account and managed it and they did not have a authorized legal representative open it on their behalf, and they pass away. Please notify our ABLE customer service in order for us to work with you to allow funds to be distributed to pay for outstanding qualified disability expenses and funeral and burial costs.
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10. How it Works
Before we go over the nuts and bolts of enrollment. Let me ask a poll question to see if any of you serve individuals that have an ABLE United account.

11. Enroll
Open an ABLE account online at ableunited.com in approximately 15 minutes
No documents to upload. Enter identifying information, select disability category and basis of eligibility, and select investment options.
Additional information required:
Another person is authorized to open the account (parent, guardian, power of attorney)
Provide date of diagnosis with name and address of physician
Now let’s look at some more detailed specifics on how to open an ABLE United account.
Enrollment can be done online on our website and takes on average 15 minutes to set up. If you created a Facebook account you can open a ABLE United account.
There are no documents to upload. First you would enter identifying information, categorize and self-certify basis of eligibility, and select investment options. If another individual is authorized to open an account on behalf of the person with a disability, they will need to identify who they are. Individual’s self-certifying under penalties of perjury stating that they meet the disability eligibility requirements will need to provide date of diagnosis and physician contact information.
There is no minimum contribution necessary to enroll.
So question we receive is what do I need from my doctor if I am self certifying? That you have diagnosis from your doctor that meets the severity requirements for the child standard of Social security. During enrollment, you will be asked how you are eligible for the able account. Either selecting that you receive SSDI/SSI, on the Compassionate allowance, or self certify. If you select self certify you will be asked to provide the date of diagnosis along with the physician information of the person with a disability.
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12. Contribute Anyone can contribute to the account
Contributions are considered gifts (not income) to the individual with a disability.
Total of $15,000 per year
More if Beneficiary is working (work in progress)
No federal income tax-deduction
Family, friends, organizations such as non- profits and churches
Rollover funds from 529 college savings plan (work in progress)
After an account is open an individual, their friends and family, or even an organization can contribute to their ABLE account electronically through ACH or by check. Anyone can contribute. Contributions are considered completed gifts and not income to the individual. Up to $14,000 can be contributed from all sources per calendar year. So if your special needs trust contributed $5,000 to your ABLE account and a family member contributes $4,000. The most that can be contributed to that ABLE account for the rest of the calendar year is $5,000 for a total of $14,000.
There is no federal income tax-deduction for contributing to an ABLE account. So the $4,000 I contributed to your able account, I can’t write them off as a donation.
At this time rollovers can only be done between able accounts. So you can’t do a direct rollover from a college savings plan or other tax-advantage saving plan.
This is a picture of Shaun and I. Shaun is a Unified partner with special Olympics who also happens to have Cerebral palsy. Shaun is a current student at University North Florida and is using his able account so he can remain eligible for Supplemental security income. He is currently saving funds in this account with the hopes in buying a car, even if its against his mother’s wishes. As well as help pay for educational expenses.
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13. Determine your financial goals – Short term or Long term
Grow
Choose from three predesigned portfolios to meet the needs of most investors or four individual funds to build a custom portfolio for those with more investment experience
Portfolio Options
Moderate
Conservative
Growth
Funds
Money Market Fund Florida Prime
U.S. Bond Fund Vanguard
U.S. Stock Fund Vanguard
International Stock Fund Black Rock
When enrolling you need to set up how you would like to grow your funds. ABLE United provides three predesigned portfolios to meet the needs of most investors or four individual funds to build a custom portfolio for those with more investment experience
The individual funds consist of A money market account (Florida Prime which is the Local Government Surplus Funds Trust Fund for Florida) a U.S. Stock option and U.S. Bond option managed by Vanguard, and an International Stock Option managed by BlackRock.
You can change how incoming contributions are invested at anytime and as frequent as you want. However, funds already invested in the program can only be rebalanced, or reinvested, twice a year.
For more information the various options as well as see current performance. Visit ableunited.com/save.
When setting up your investment options it’s important to determine your financial goals and how you plan on using this account. Are you saving for the car like Shaun, or are you going to use this to pay monthly housing bills. The account can be customized based on your needs. Current account holders have shown to invest in more aggressive options if the individual with a disability is younger and more conservative the older they get. If you have additional questions about how to invest it is recommended to speak to a financial professional.
Determine your financial goals – Short term or Long term
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14. Withdraw
Money may be withdrawn at any time and for any reason – you are in control!
Withdrawals may be made by electronic transfer or by check. Earnings are tax-free if withdrawals are used for qualified disability expenses.
Consideration:
Keep documentation for the IRS
Earnings may be subject to tax plus 10% if withdrawals used for non-qualified disability expenses
After you have put money into the account, how do you get money out.
Money may be withdrawn at any time and for any reason. There is no preauthorization required for you to withdrawal your funds. You don’t have to get permission from social security, ask ABLE United for permission, or even speak to someone. You are responsible for when and how the funds are used, just like you would with a checking or savings account.
Withdrawals can be made by electronic transfer to a checking or savings account. Or you can have ABLE Untied cut a check to the account owner, the administrator, or a third party. Earnings on the account are tax free as long as you use the funds for qualified disability expenses.
ABLE United is not tracking how you use your funds, but the IRS might ask. Social security will also be looking at these accounts for individuals who are receiving supplemental security income. We recommend keeping documentation on the expenses from your ABLE account to including justification of why it is a qualified disability expense in case they ask.
So what happens if you use these funds for non-qualified disability expenses, for example gambling. The earnings portion of the withdrawal would be subject to the individuals income tax rate including a 10% penalty. Also, if you are receiving Supplemental Security income, a non-qualified disability expense would count towards you resource limit.
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15. How much does it cost? No cost to open and maintain an account
Save on fees – ABLE United offers the best value for Florida residents.
No application fee
No minimum contribution
Monthly account maintenance fee: $0.00
Annual fee of $10 for paper (OPTIONAL)
Investment administration fee ranges from % to 0.290% (annualized) of the account balance
Now the question everyone asking is how much does it cost.
I’m proud to announce that our Board has agreed to reduce our monthly account maintenance fee to ZERO. Which means there is no application fee, no minimum contribution, and if you select electronic delivery for correspondence, which means your account statements will be posted in a pdf online under the account login, then there is no cost to open and maintain an account. If the individual prefers to have account correspondence mailed there is an annual fee of $10 to cover that cost.
Some additional costs if people wants more than 2 paper checks, if the funds they request to contribute bounce.
There are annualized investment administrative costs. However these come out of the performance. For example, looking back…..
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16. Resources

17. Additional Resources
Information about ABLE United and finances for individuals with I/DD
Florida’s Chief Financial Officer MyMoney -
Financial literacy lessons for individuals and families
ABLE United website –
Testimonial videos and blog posts, upcoming/previous webinars
ABLE United Facebook Page –
ABLE National Resource Center –
Information on ABLE from a national perspective, including information about all other state’s ABLE programs
Local financial or legal expert that is familiar with ABLE accounts
This is a list of resources that provide beneficial financial and able account information.
ableunited.com

18. New Accounts Can Receive A FREE GIFT
Promo code: JENN17
New accounts are entered into a quarterly drawing for an ABLE account contribution.

20. Questions
Do I have to file taxes? Tax reporting: 5498qa to IRS stating able contributions, rollover contributions, cumulative contributions, fair market value, if able account was opened this year, basis of eligibility :SSDI, SSI, or disability certified and finally primary disability type: developmental, intellectual, psychiatric, nervous, congenital anomalies, respiratory or other
1099QA if you have a withdrawal showing amount of withdrawal, how much was earnings, only report if you had non qualified disability expenses.

21. Questions Visit ableunited.com to open your ABLE United account today.
Learn more about ABLE United accounts, listen to other account holders, and review our Program Description and Participation Agreement.
Customer Service:
Toll Free ABLE (2253)
Thank you all for attending this account basics training webinar. We will be processing certificates this week and should have them ed to you on Friday. If you do not receive the certificate, please check your spam or junk folder for an from with an attachment.
After this webinar you will receive a two question survey to help guide us on what topics you are interested in hearing about for future webinar trainings. Thank you all for attending ABLE United account basics training. We hope it was informative and to have a wonderful rest of your day. And remember ABLE United makes it possible, to save for a better life experience.
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