Frequently Asked Questions
No. However, you should have a record of the doctor's signed diagnosis, a benefits verification letter from the Social Security Administration or other relevant documentation for account verification, as needed.
Not at the time of the withdrawal. Annually, NJ ABLE will report the total amount of your withdrawals to the IRS and the date and amount of each of your withdrawals to the Social Security Administration. In the event that either entity wants to verify the expenses, it’s recommended that you keep detailed records.
No. You're limited to one ABLE account, except in the case of a rollover from another qualified ABLE program. This extends beyond NJ ABLE to include accounts in other ABLE programs.
In the case of a rollover to an ABLE account for the same account owner, the account from which the funds are withdrawn must be closed within 60 days of the withdrawal.
Up to $18,000 per year. No further contributions may be made until the start of the next calendar year. Account balance limit: $305,000.
Absolutely. Anyone can contribute directly to your account. No matter who contributes, you, the account owner or authorized individual, retain control over the account.
Twice per calendar year. You can change your investment options for any NEW contributions at any time.
These are contributions of a specific amount made automatically into your account on a custom frequency basis. For example, you can set up recurring contributions of $25 per month. This makes the process of investing very simple.
This automatically moves funds from one investment option to another.
This is a way of making automatic withdrawals, such as when you'd like to use your account to make payments each month. You can make systematic withdrawals to the bank listed on your account, by mail to your address, or to a third party.
An asset or item purchased with the hope of a gain in the future.
Yes - ABLE account owners who earn income may exceed the annual $18,000 contribution limit. The additional annual contribution amount allowed is equal to the federal poverty level for a one-person household (in your state of residence) or the account owner's gross wages, whichever is less. Individuals may not be eligible if they are already contributing to their retirement through:
- a defined contribution plan
- an annuity contract
- an eligible deferred compensation plan
Account Owners should keep adequate records to ensure the limit is not exceeded. Any increase in contributions could impact tax obligations, so consult a tax advisor before making any such increase. If you are eligible, fill out the Self Certification form.
Ugift® is a feature of your ABLE account that allows friends and family to contribute to your savings in lieu of traditional gifts. It's simple to use - just log in to your account to find your code and share it with friends and family, who can use it at UgiftABLE.com to contribute directly into your account. Learn more by reading our Ugift ABLE FAQ.
Recent ABLE regulations expanded the list of Authorized Individuals who can open an ABLE account. In some instances, no backup documentation is required to prove Financial Authority to act on behalf of the ABLE Account Owner. For additional details, click here.
