Learn what expenses are considered Qualified Disability Expenses and what happens if the individual with a disability has non-qualified expenses.
What is a qualified disability expense?
If the money in an ABLE United account is spent on one of the following Qualified Disability Expenses, as defined by federal law, the earnings on the money withdrawn are tax-free.
Qualified Disability Expenses
Education
Housing
Transportation
Legal Fees
Financial
Management
Employment Training
and Support
Assistive Technology
and Personal Support
Services
Oversight and
Monitoring
Funeral and Burial
Other Expenses Approved by the Treasury Regulations
Easy Withdrawal
Money in an ABLE United account may be withdrawn at any time and for any reason via electronic transfer (ACH) or by requesting a paper check. Optional reloadable ABLE Visa® Prepaid Card available for your convenience.
Broadly Defined
Qualified Disability Expenses include basic living expenses and are not limited to items for which there is a medical necessity or which solely benefit the individual.
Documentation
Withdrawals do not need approval. Retain documentation to justify expenses to the Social Security Administration and the Internal Revenue Service.
Non-Qualified Expenses
Supplemental Security Income: Funds withdrawn and retained to pay non-qualified expenses beyond the month of withdrawal are considered a resource of the individual.
Federal Income Taxes: If withdrawals from the ABLE account for the calendar year exceed the Qualified Disability Expenses, the individual may be subject to income tax plus an additional 10% penalty. Consult a tax professional for additional guidance.
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The information contained in this website is for general information purposes only and does not constitute tax or investment advice. Performance of the program discussed herein is not guaranteed and is subject to market conditions, among other things. Carefully consider objectives, risks, charges and expenses before investing. As with any investment, it is possible to lose money by investing in this program. Please read the Program Description and Participation Agreement carefully.
This ABLE Visa Prepaid Card is issued by Sunrise Banks N.A., St. Paul, MN 55103, Member FDIC, pursuant to license from Visa U.S.A., Inc. This card can be used everywhere Visa debit cards are accepted. Use of this card constitutes acceptance of the terms and conditions stated in the Cardholder Agreement. The ABLE Visa Prepaid Card is marketed and administered by True Link Financial, Inc. True Link Financial, Inc. is a financial technology company and not a bank. Banking services are provided by Sunrise Banks, N.A. The ABLE Visa Prepaid Card funds are FDIC insured up to $250,000 through Sunrise Banks, N.A. Member FDIC. Sunrise Banks, N.A. Privacy Policy.
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