What is a successor designated beneficiary?

A successor for an ABLE United account must be a sibling, step-sibling or half-sibling of the account Owner and must also qualify for an ABLE United account. A successor must be added to the account before the death of the beneficiary.

What happens if the Authorized Legal Representative (ALR) passes away?

The Beneficiary of an ABLE account is not affected when the ALR passes away because the Beneficiary owns the account. To change or remove the ALR, contact customer service Monday – Friday, 9am – 5pm ET, at 1-888-524-2253, or Florida Relay Service dial 711.

If I withdraw the full balance and close my account, are the funds taxable?

The funds are not taxable if used for Qualified Disability Expenses. If withdrawals from the ABLE account for the calendar year exceed the Qualified Disability Expenses, the earnings portion of the funds may be subject to income tax, plus a 10% penalty. Consult a tax professional for additional guidance.

Keep in mind that these funds may be considered an asset for federal means-tested programs, like Supplemental Security Income or Medicaid. Alternatively, you may roll over the funds to another ABLE account.

Are there any limits to how much I can contribute?

Annual Standard Contribution Limit

There’s a $19,000 yearly limit for standard contributions — this includes any gift contributions made to your account. Remember, there is a $5 contribution minimum.

ABLE to Work Contribution Limit

With ABLE to Work, if a Beneficiary is earning wages from employment, they can contribute an amount equal to the Beneficiary’s current year gross income up to $15,060 (for 2025) each year, in addition to the yearly contribution limit of $19,000.

If the Beneficiary or their employer is contributing to a defined contribution plan (i.e., 401(k)), annuity plan (403(b)), or deferred compensation plan (457(b)) this calendar year, the Beneficiary is not eligible to make ABLE to Work contributions.

Maximum Balance

There is a maximum balance of $418,000 for each account. Once your account reaches this limit, your account may continue to earn money, but you will not be able to make any additional contributions until your balance dips below this limit.

What investment options can I choose from?

You can decide to invest your money in a predesigned portfolio (Conservative, Moderate or Growth) or you can build your own with any combination of predesigned portfolios, a money market fund, U.S. or international stock funds, U.S. bond fund, or the FDIC savings fund.

How you decide to invest your money is up to you, but you should consider your risk tolerance and savings goal.

To learn more about each portfolio, visit Investment Options or talk to your financial adviser.

Can I change my investment option?

Yes, but under IRS requirements, you are only allowed to change your invested funds allocation two times each year. You can change how new contributions are allocated at any time.

Any changes to invested funds will be applied to prior contributions and earnings. If you do make a change to your investment option, we’ll sell your units in the original option and use the proceeds to buy units in the new one. You can make a change online from your account or contact customer service for an Investment Option or Allocation Change Form.

What is the FDIC Savings Option?

The FDIC Savings Option is an alternative to investing. Assets up to $250,000 are protected and insured by the Federal Deposit Insurance Corporation (FDIC). Keep in mind that with a low level of risk, there’s also a lower level of returns. For more information on the savings and investment options, visit Investment Options.

What’s the difference between the Investment Options and FDIC Savings Option?

Money saved in the FDIC Savings Option is insured for amounts up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) and could earn minimal interest. The interest will fluctuate slightly based on the interest rate of the U.S. capital markets.

ABLE United offers seven professionally managed investment options designed to meet the needs of most investors. These include predesigned portfolios and individual funds from which a custom portfolio may be built by allocating funds to one or more options.

The performance of your investment will vary from day to day based on the performance of the underlying stock, bond and money market securities. The investment when withdrawn may be worth more or less than contributions.

Also, withdrawals can take 2 – 7 business days to complete, depending on how the money is allocated. Learn more about the Investment Options or visit Investment Performance for more information on past performance.

Can I change how my money is allocated?

Yes. For new contributions, you may select which Investment Options to contribute to.

For money that is already in an ABLE United account, the allocation of the account balance may be modified up to two times per calendar year.