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, ABLE Nevada 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.
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 $19,000 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.
Contributions to an Account cannot exceed $19,000 per year (2024). This amount is tied to the federal annual gift tax exclusion limit and may adjust periodically to account for inflation. Contributions can come from any source. If the Account Owner is working, and they do not participate in an employer-sponsored retirement program, they may contribute more to the Account, up to the federal poverty guideline for the Account Owner’s state of residence.
For SSI beneficiaries, up to $100,000 can be saved in an ABLE Account without affecting their monthly cash benefit. Total Account balances are limited to $$500,000.
Yes. The additional amount is equal to the lesser of the following:
- Account Owner’s annual gross wages, or
- U.S. Department of Health and Human Services Poverty Guidelines amount for a one-person household in the Account Owner’s state of residence*
Additional contribution amount does not apply if the Account Owner is already contributing to their retirement through:
- A defined contribution plan
- An Annuity contract
- An eligible deferred compensation plan
*U.S. Department of Health and Human Services Poverty Guidelines change annually
Contributions come from any source: the Account Owner, family, friends, inheritances, fund-raisers, insurance settlements, crowd funding, and third parties. Ugift ABLE is an easy way for third parties to make gift contributions directly into the Account.
Ugift® is a feature of your ABLE Account that allows friends and family to contribute to your savings in lieu of traditional gifts. It is 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.
Nevada does not impose a State income tax on individuals. Account Owners should consult a qualified tax adviser regarding the application of Nevada tax rules and other states’ tax rules to their particular circumstances.
Yes. A rollover from a College 529 Plan into an ABLE Account can be made for the same individual or for a member of the family of the 529 college savings account beneficiary. The maximum rollover amount per year is $19,000, subject to other contributions made to the Account during the calendar year. If you plan to contribute via a Rollover, the College 529 Plan from which you are transferring funds may restrict or prohibit such a transfer of funds or impose charges. You should investigate this option thoroughly before requesting such a transfer, and you should consider consulting with a tax or investment professional to determine the tax applicability to your scenario.
Yes. Depending on your adjusted gross income, the amount of the Saver’s Credit can be 50%, 20%, or 10% of contributions made to an ABLE Account of which you are the designated beneficiary. Rollover contributions do not qualify for this credit. The maximum contribution amount that may qualify for the credit is $2,000 ($4,000 if married filing jointly), making the maximum credit $1,000 ($2,000 if married filing jointly). See Form 8880, Credit for Qualified Retirement Savings Contributions, for more information.
No, an ABLE account does not shield income for benefit-eligibility. There is no change in the way the income of the ABLE Account Owner is counted by means-tested benefit programs. Employment earnings are still counted as earned income or in terms of substantial gainful activity (SGA) and are taken into consideration when determining eligibility for certain public benefits.
These are contributions of a specific amount made automatically into an account on a custom frequency basis. For example, you can set up recurring contributions of $25 per month. This makes the process of saving very simple.
