A
ABLE accounts are tax-advantaged savings accounts for eligible
individuals with disabilities.
The ABLE Age Adjustment Act expands ABLE eligibility to more Americans
with disabilities. Starting January 1, 2026, individuals with a
qualifying disability that started before age 46 can open an ABLEnow
account.
Thanks to the ABLE to Work Act, working account owners who do not
participate in an employer-sponsored retirement plan may be eligible
to contribute above the annual ABLE contribution limit.
ABLEAmerica is the nation’s only advisor-sold ABLE program. It offers
the unique opportunity to work with a financial professional to build
an ABLE savings plan. Learn more about ABLEAmerica.
ABLEnow is the national, direct-sold ABLE savings program offered by
the Commonwealth of Virginia.
Pay for qualified disability expenses with the ABLEnow Card, a debit
card available to all account owners at no additional cost.
The ABLEnow Account Owner is the Eligible Individual with a disability
(also called the Designated Beneficiary).
Login to the online ABLEnow account portal (sometimes called the
consumer portal or online portal) to view your balance and transaction
information, manage notifications and more.
An Authorized Representative may open and manage an ABLEnow account if
the Account Owner is under the age of 18, is unable to open the
account, or chooses to open an account but not exercise signature
authority. Learn who can serve as an Authorized Representative in the
FAQs.
C
ABLEnow is administered by Commonwealth Savers, formerly known as Virginia529, an independent agency of the Commonwealth of Virginia.
A contribution is money added to an ABLEnow account.
D
ABLEnow contributions are automatically allocated to the FDIC-insured
ABLEnow deposit account, which is linked to the ABLEnow Card.
The Designated Beneficiary (also called the Eligible Individual) is the
person with a disability who is the ABLEnow Account Owner.
The Designated Survivor will receive the ABLEnow account assets in the
event of the Account Owner’s death, following the payment of any
outstanding Qualified Disability Expenses, Medicaid claims and estate
taxes of the deceased.
With direct deposit, a paycheck, Social Security income or other
recurring electronic payment is automatically deposited into an
ABLEnow account.
A distribution (sometimes called a withdrawal) is money taken out of
an ABLEnow account. Non-qualified withdrawals are subject to federal
and state taxes and may be subject to a 10 percent tax penalty.
E
An Eligible Individual’s spouse, parent, sibling, or grandparent can
open and manage an ABLEnow account as their Authorized Representative.
For these Eligible Family Members, no documentation of the
relationship is required.
The Eligible Individual (sometimes called the Designated Beneficiary) is
the person with a disability who is the ABLEnow Account Owner.
F
Two types of fees may be charged to your account. Asset-based fees are
collected by an investment manager for managing a fund. Service-based
fees cover the administrative costs to run the ABLEnow program.
The Financial Resource Hub is a collection of helpful tools and
resources for ABLEnow customers in the account portal.
G
ABLEnow offers group enrollment options for providers wishing to open
and manage three (3) or more ABLEnow accounts on behalf of eligible
clients. Visit ABLEnow.com/Group for more information.
I
An investment portfolio is a collection of assets. Investing can build
wealth over time, but it also involves risk.
M
Medicaid is a federal mean-tested program that provides health
coverage to millions of Americans, including eligible people with
disabilities. Medicaid is administered by states, according to federal
requirements. Eligibility criteria varies from state to state. Learn
more from the Centers for Medicare & Medicaid Services (CMS).
When an ABLEnow Account Owner passes away, and after all outstanding
Qualified Disability Expenses are paid, a state may file a Medicaid
recovery claim against an ABLE account. This provision is sometimes
called “Medicaid payback” or “Medicaid clawback.”
Internal Revenue Service (IRS) rollover rules use the term Member of
the Family, which is defined in IRC Section 529A as the Account
Owner’s sibling, whether by blood or adoption, including his or her
brother, sister, stepbrother, stepsister, half-brother, and
half-sister.
The minimum cash balance refers to the minimum cash required to be in
the ABLEnow deposit account before customers have the option to invest
additional contributions into one or more investment portfolios.
Money Market Funds offer high liquidity with a very low level of risk.
The Money Market Fund may be called the “Money Market Portfolio.”
A mutual fund is a specific investment portfolio of stocks, bonds, or
other securities, overseen by a professional money manager.
P
PNC Bank, NA supports ABLEnow as account custodian. PNC is one of the
largest diversified financial services institutions in the United
States.
The program description is an important document that provides
detailed information and rules on the ABLEnow program.
Q
Money in an ABLE account may be used to pay Qualified Disability
Expenses that maintain or improve the health, independence and quality
of life of the Account Owner.
R
Millions of Americans who receive monthly Supplemental Security Income
(SSI) benefits need help managing their money. In these situations, a
relative, friend, or other interested party can serve as the
Representative Payee. The Representative Payee receives the
individual’s SSI payments and has authority to use the funds on their
behalf.
A rollover is a tax-free transfer of funds from one ABLE program to
another without incurring any tax or penalty. There is also a process
to rollover funds from a 529 college savings account to an ABLE
account. Review instructions in the FAQs.
S
Social Security Disability Insurance (SSDI) pays a monthly benefit to
disabled adults who are unable to return to work, as well as certain
family members of the “insured.” The benefit amount depends on how
long the individual worked and their earnings over that time. Learn
more from the Social Security Administration (SSA).
Supplemental Security Income (SSI) is a federal means-tested program
that provides monthly payments to people with disabilities and other
eligible individuals. Learn more from the Social Security
Administration (SSA).
T
A target-risk portfolio is a specific type of mutual fund that holds a
diversified mix of stocks, bonds, and other investments to meet a
certain risk tolerance. Target-risk portfolios are professionally
managed to maintain their risk level over time.
A transfer (sometimes called an electronic funds transfer) is a
movement of money between two accounts. ABLEnow customers can link a
bank account to easily transfer money to and from their ABLEnow
account.
W
A withdrawal (sometimes called a distribution) is money taken out of
an ABLEnow account. Non-qualified withdrawals are subject to federal
and state taxes and may be subject toa 10 percent tax penalty.
#
1099-QA is an Internal Revenue Service (IRS) tax form that reports all
the withdrawals from the ABLE account during the previous tax year.
529A account is another term for ABLE accounts. The federal ABLE Act
amended Section 529 of the Internal Revenue Code (IRC) to create
tax-free savings accounts for eligible individuals with disabilities.
5498-QA is an Internal Revenue Service (IRS) tax form that reports
contributions, rollovers and direct program-to-program transfers to
the ABLE account during the previous tax year.
