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 secure, notched debit card available to account owners who are enrolled in the Checking Account option.
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.
Ascensus became the recordkeeper for ABLEnow in March 2026. Ascensus is the nation’s largest independent third-party administrator and government savings facilitator, with extensive experience supporting ABLE programs.
An Authorized Individual 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 Individual 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.
For entity (group) accounts, the Control Person is an individual with significant responsibility and authorization to control, manage, or direct the Entity. In the Entity Management Dashboard, a Control Person can edit profile settings; add, edit, or remove Team Members; assign an access level to Team Member(s); and open, manage and view Accounts.
D
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.
An entity (sometimes called a group) is a company, organization, either for-profit or non-profit, or government agency that is designated to act as an Authorized Individual for one or more ABLE Eligible Individuals.
ABLEnow offers entity (sometimes called group) enrollment options for providers wishing to open and manage ABLEnow accounts on behalf of eligible clients. Visit ABLEnow.com/entity-management for more information.
F
An FDIC-insured portfolio is a low-risk way to save while earning interest daily and protecting against loss. Prior to the ABLEnow transition to Ascensus, this was called the Money Market Portfolio.
Two types of fees may be charged to your account. Asset-based fees are collected by an investment manager for managing a fund. Account Maintenance fees cover the administrative costs to run the ABLEnow program.
Fifth Third Bank is the banking partner for the ABLEnow Checking Account.
I
An individual who is authorized to access information on an account, such as an account statement, but does not have any control or authority to act on the account.
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.
A mutual fund is a specific investment portfolio of stocks, bonds, or
other securities, overseen by a professional money manager.
P
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).
A person designated to assume control of an ABLEnow account upon the death of the account owner. The successor account owner must be a sibling of the account owner and meet ABLE eligibility requirements..
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).
A way of automatically moving money from one Investment Option to one or more Investment Options on a scheduled basis. See the Program Description for more information.
Regularly scheduled withdrawals from an ABLEnow Account (investment option or checking account option). An account can have up to two systematic withdrawals set up.
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.
