Frequently Asked Questions

Signed into law in December 2014, the Stephen Beck, Jr. Achieving a Better Life Experience (ABLE) Act authorized states to establish tax-advantaged savings programs for individuals with disabilities.

In 2015, Virginia became the first state to approve and pass ABLE legislation following the federal ABLE Act. This milestone was especially meaningful because the original idea for ABLE accounts was conceived by a group of Virginia parents seeking better financial options for their children.

The state legislation laid the foundation for what would become the national ABLEnow and ABLEAmerica programs, giving Eligible Individuals with disabilities and their families a new  opportunity to save, invest and build financial independence.

The Achieving a Better Life Experience (ABLE) Act created Section 529A of the Internal Revenue Code. This is the federal legal framework that establishes the specific rules and requirements of an ABLE account.

Achieving a Better Life Experience (ABLE) accounts are tax-advantaged savings accounts for Eligible Individuals with disabilities.

Millions of individuals with disabilities and their families depend on public benefits that provide essential support for income, health care, food and housing. Many of these programs have strict resource or asset limits, which can make it challenging to save money without risking eligibility.

The ABLE Act recognizes the significant and ongoing costs associated with living with a disability. For the first time, Eligible Individuals can save and pay for Qualified Disability Expenses with a tax-advantaged ABLE account without affecting eligibility for certain means-tested benefits, including Medicaid and Supplemental Security Income (SSI).

ABLEnow is a national, direct-sold ABLE savings program offered by the Commonwealth of Virginia.

The program is administered by Commonwealth Savers, an independent state agency responsible for Virginia’s state-facilitated savings programs, including those for disability, education and retirement savings.

ABLEnow is supported by private-sector financial firms, with Ascensus serving as the program’s recordkeeper.

ABLEAmerica is the national, advisor-sold ABLE savings program offered through a partnership between Commonwealth Savers and Capital Group, home of American Funds.

ABLEnow accounts are available to eligible U.S. citizens and legal residents, regardless of state residency.

To open an ABLEnow account, the ABLE Act requires an Eligible Individual to have a qualifying disability that began before age 46. The disability must be long-term or terminal and must result in marked and severe functional limitations.

In addition, the individual must meet at least one of the following criteria:

• Be eligible for Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) based on blindness or disability; or
• Self-certify a qualifying disability with a written, signed diagnosis from a licensed physician.

View potentially eligible disabilities and conditions in the Social Security Administration (SSA) Compassionate Allowances or Listing of Impairments, also known as the Blue Book.

"Self-certification" requires an individual to certify and agree to the following statements during enrollment:

• The individual has a written, signed disability diagnosis from a qualified, licensed physician. Do not submit your written diagnosis; keep this documentation for your records.
• The individual is either:
  • Blind, as defined by the Social Security Act (SSA), or
  • Has a medically determinable physical or mental impairment that results in marked and severe functional limitations lasting for a continuous period of 12 months or longer, or which can be expected to result in death.
• The blindness or disability started before the age of 46.

View potentially eligible disabilities and conditions in the Social Security Administration (SSA) Compassionate Allowances or Listing of Impairments, also known as the Blue Book.

Enrollment is completed entirely online, and you self‑certify that you meet the eligibility requirements.

You may use the optional Physician Diagnosis Form to obtain a written diagnosis for your records. Do not submit your written diagnosis; keep this documentation for your records.

To qualify for an ABLE account, an individual must have a disability that began before their 46th birthday. However, an individual older than age 46 may open an ABLEnow account if their disability began before age 46.

No. ABLEnow accounts are available to eligible U.S. citizens and legal residents, regardless of state residency.

The ABLE Age Adjustment Act is a federal law that took effect in 2026. It expanded eligibility for ABLE accounts to individuals with a qualifying disability that began before age 46. Previously, ABLE eligibility was limited to those whose disability began before age 26.

Money in your ABLEnow account may be used to pay for Qualified Disability Expenses. An expense is qualified if:

• You incurred the expense at a time you were considered an Eligible Individual;
• The expense relates to your blindness or disability; and
• The expense helps you maintain or improve your health, independence or quality of life.

Each person’s needs are different, and qualifying expenses may vary.

ABLEnow accounts may be used to pay a variety of expenses related to maintaining the Eligible Individual’s health, independence and quality of life. Examples of Qualified Disability Expenses include, but are not limited to:

• Education
• Housing
• Transportation
• Employment training and support
• Assistive technology and related services
• Health
• Prevention and wellness
• Financial management and administrative services
• Legal fees
• Expenses for oversight and monitoring
• Funeral and burial
• Basic living expenses
• Other expenses approved by the Secretary of the U.S. Treasury

No. Money may be withdrawn from an ABLEnow account at any time and for any reason.

It is your responsibility to track how you spend the money in your ABLEnow account.

Each year, ABLEnow reports the total amount of distributions to the Internal Revenue Service (IRS) as part of annual tax reporting. The IRS may review distributions to determine whether a withdrawal was for a Qualified Disability Expense.

In addition, ABLEnow reports to the Social Security Administration (SSA) the date and amount of each distribution. If the individual receives Supplemental Security Income (SSI) or Medicaid, the SSA may review distributions to determine whether the withdrawal was for a Qualified Disability Expense.

For this reason, you should keep records and receipts that document how funds are spent.

If money is withdrawn from an ABLEnow account for a non-qualified expense, the earnings portion of the withdrawal will be treated as income, taxed at the designated beneficiary’s tax rate, and subject to a 10% federal tax penalty.

In addition, any state tax deductions or credits previously claimed may be subject to recapture. Please check your state tax department for more information on recapture requirements.

Non-qualified withdraws may also be counted when determining eligibility for means-tested public benefits programs.

If the Eligible Individual is under age 18, is unable to open the account, or chooses to open an account but not exercise signature authority, an individual authorized to act on their behalf may open and manage the account as the Authorized Individual.

An ABLEnow account may be established by the Authorized Individual on behalf of an Eligible Individual in the following order of priority:

• Agent under a Power of Attorney, or if none, a
• Conservator or Legal Guardian (of the person and/or property),
• Spouse,
• Parent,
• Sibling,
• Grandparent, or
• Representative Payee appointed for the Account Owner by the Social Security Administration (SSA).

By opening an ABLEnow account on behalf of an Eligible Individual, the Authorized Individual self-certifies that no person with a higher priority is willing and able to serve in that role.

An Authorized Individual may neither have nor acquire any beneficial interest in the account during the Account Owner’s lifetime and must administer the account for the benefit of the Account Owner.

ABLEnow offers entity enrollment options for providers wishing to open and manage ABLEnow accounts on behalf of eligible clients. Visit ABLEnow.com/entity-management for more information.

No. Eligible Individuals may have only one ABLE account at a time.

Open an ABLEnow account online at ABLEnow.com. Complete and submit the application by following the step-by-step instructions.

For the Eligible Individual with a disability, the following is required:

• Personal information: name, date of birth, address, Social Security Number, email and phone
• Basis of eligibility under the ABLE Act
• Category of disability under the ABLE Act

If a person other than the Eligible Individual with a disability is opening the account, the following additional information is required from the Authorized Individual:

• Relationship to Account Owner
• Personal information: name, date of birth, address, Social Security Number, email and phone

Authorized Individuals opening an ABLEnow account as the agent under a Power of Attorney, Conservator, Legal Guardian, or Representative Payee are required to submit the appropriate documentation:

• Power of Attorney: Submit a notarized copy of the document that grants you the legal authority to manage the banking and other financial institution transactions of the Eligible Individual.<
• Conservator: Submit a copy of the court order or other documentation issued by your state granting appropriate financial authority of the Eligible Individual.
• Legal Guardian: Submit a copy of the court order or other documentation issued by your state granting appropriate financial authority of the Eligible Individual.
• Representative Payee: Submit a copy of your documentation issued by the Social Security Administration (SSA) appointing you as Representative Payee for the Eligible Individual.

There is no enrollment fee to open an ABLEnow account.

The minimum initial contribution to open an ABLEnow account is $5. Subsequent contributions may be as low as $1. However, if an ABLEnow account balance remains $0 for 90 days, the account may be closed due to inactivity.

Yes. The following fees may apply:

Account maintenance fee:
The account maintenance fee is $8.50 per quarter when statements are delivered electronically, which is the default option at enrollment. If the Account Owner or their Authorized Individual chooses paper statements, the maintenance fee is $12.75 per quarter.

Investment option fee:
Asset-based fees assessed quarterly based on the investment options selected. The three target-risk portfolio options have a 0.18% asset-based fee. The FDIC-Insured portfolio has a 0.15% asset-based fee.

The Checking Account portfolio option does not have an asset-based fee. However, a $2 monthly service charge applies unless the Account Owner maintains an average daily balance of at least $250 or enrolls in electronic statements directly with Fifth Third Bank.

Other possible fees:
Additional fees may apply depending on account activity. See the Program Description for details.

To transfer (rollover) your ABLE account from another state’s program to ABLEnow, open your ABLEnow account. Complete and submit the indirect or direct rollover form on the forms page.

Yes. ABLEAmerica is the national, advisor-sold ABLE savings program offered through a partnership between Commonwealth Savers and Capital Group, home of American Funds.

ABLEAmerica gives Eligible Individuals the opportunity to work with a financial professional to build an ABLE savings plan that meets their specific needs.

Money added to an ABLEnow account is called a contribution. There are several ways to contribute to your ABLEnow account:

• One-time contribution from a linked bank account
• Recurring contribution from a linked bank account
• Direct deposit
• Check mailed with the Additional Contribution Form
• Gift contribution
• Rollover from another ABLE account or a 529 education savings account

Anyone can contribute to an ABLEnow account, including the Account Owner, family, friends, organizations, or other legal entities

Federal law sets the maximum amount that can be contributed to an ABLE account each year. For 2026, the standard annual ABLE contribution limit is $20,000. The Internal Revenue Service (IRS) may adjust this amount in future years.

Working Account Owners who do not participate in an employer-sponsored retirement plan may be eligible to contribute above the annual ABLE contribution limit through the ABLE to Work provision. The additional contribution is limited to the lesser of the prior year’s federal poverty guideline for a one-person household ($15,650 in 2025 for the 48 contiguous states and the District of Columbia) or the Account Owner’s compensation for the taxable year. In 2026, eligible working individuals could contribute up to $35,650 in total ($20,000 standard contribution limit plus the maximum ABLE to Work contribution).

Most ABLEnow Account Owners maintain balances under $100,000, which generally preserves eligibility for Supplemental Security Income (SSI) benefits. It’s important to note that the cumulative ABLEnow account value limit is $675,000.

A bank transfer, sometimes called an electronic funds transfer, moves money between two accounts. Most banks send these payments through Automated Clearing House (ACH), a U.S. financial network that transfers money electronically without using paper checks, credit card networks, wire transfers, or cash.

Bank transfers are typically free and may take several business days to process.

Log in to your ABLEnow account and select “Make a Contribution” from the navigation menu. One-time contributions are invested based on the allocation on file at the time the contribution is received.

Enter the details for your one-time contribution, then select the bank account you would like to use or add a new bank account. Review your information and submit your request.

Log in to your ABLEnow account and select “Make a Contribution” from the navigation menu. Recurring contributions, also called an Automatic Investment Plan, are invested based on the allocation on file at the time each contribution is received.

Enter the details for your recurring contribution and choose a schedule that fits your needs, such as monthly, quarterly or a custom frequency. Select the bank account you would like to use or add a new bank account. Review your information and submit your request.

Online contributions are processed more quickly, but you may also contribute by mailing a check.

Log in to your ABLEnow account and select “Make a Contribution” from the navigation menu. Choose “Mail a Check” as the contribution type to generate a prefilled form with mailing instructions to include with your check.

You may also mail a check with an or a Ugift® coupon. Be sure to include the ABLEnow Account Owner’s name and account number with your payment.

Yes. Friends and family can support an ABLEnow Account Owner by contributing directly to their ABLEnow account through Ugift®.

Each ABLEnow Account Owner receives a unique Ugift code to share. Gift givers can use the code to contribute online or print a personalized Ugift coupon and mail it with a check. Ugift has no fees, and contributions are deposited directly into the ABLEnow account.

Total annual contributions to an ABLE account are subject to the annual ABLE contribution limit established under federal law. The Internal Revenue Service (IRS) may adjust this amount in future years.

Working Account Owners who do not participate in an employer-sponsored retirement plan may be eligible to contribute above the annual ABLE contribution limit under the ABLE to Work Act.

ABLEnow accounts are also subject to a cumulative account value limit.

Yes. Because ABLEnow and ABLEAmerica are Virginia-sponsored ABLE savings programs, Virginia taxpayers who contribute to an ABLEnow or ABLEAmerica account may be eligible for a state income tax deduction of up to $2,000 per contributor, per year.

Residents of other states should check with their state tax agencies to determine if contributions to an ABLE account offer any state tax advantages.

Money taken out of an ABLEnow account is called a withdrawal. There are several ways to make a withdrawal from your ABLEnow account:

• One-time withdrawal requested online, with funds sent by bank transfer or check.
• Recurring withdrawal, also called a systematic withdrawal, scheduled online and sent to the bank account listed on your account, mailed to your address on file, or sent to a third party.
• Withdrawals using the optional Checking Account Option, including debit card purchases and cash withdrawals.

ABLEnow accounts may be used to pay a variety of Qualified Disability Expenses related to maintaining the Eligible Individual’s health, independence and quality of life. See the Qualified Disability Expenses section for more information.

A Systematic Withdrawal Program (SWP), also called a recurring withdrawal, allows Account Owners or their Authorized Individual to automatically withdraw funds from their ABLEnow account on a regular schedule. The minimum withdrawal amount is $50, and Account Owners choose the frequency, start date, amount, investment option(s) to withdraw from, and an optional end date.

You may request a withdrawal from any investment option in your ABLEnow account, including the Checking Account Option.

Contributions may not be available for withdrawal immediately. Depending on the method used to add funds, contributions may need time to process and clear before they can be withdrawn.

Earnings grow free from federal taxes. In addition, ABLE Account Owners may qualify for the federal Saver’s Credit for up to $2,000 in contributions they make to their ABLE accounts.

States may offer state tax incentives too. In Virginia, earnings grow free from federal and state taxes. Virginia also offers an annual state income tax deduction of up to $2,000 per contributor for contributions to an ABLEnow or ABLEAmerica account

Yes. Because ABLEnow and ABLEAmerica are Virginia-sponsored ABLE savings programs, there are tax advantages for Virginia taxpayers. In Virginia, earnings grow free from both federal and state taxes. Virginia also offers an annual state income tax deduction of up to $2,000 per contributor for contributions to an ABLEnow or ABLEAmerica account.

ABLEnow Account Owners may choose from three target-risk investment portfolios, an FDIC-insured savings account, or a checking account with a debit card. You may invest in one option or allocate funds among the portfolios offered.

Each option is designed to address different goals, time horizons and risk tolerances:

• Aggressive Growth
• Moderate Growth
• Conservative Income
• FDIC-Insured Savings Account
• Checking Account

View details on the Investment Options page.

A target-risk portfolio is a type of mutual fund that holds a diversified mix of stocks, bonds and other investments designed to match a specific level of risk. Investors select a portfolio based on their time horizon and risk tolerance, such as conservative, moderate or aggressive.

Target-risk portfolios are professionally managed to maintain their intended risk level over time. It’s good practice to periodically review your investment choices and adjust them if your time horizon, risk tolerance or goals change.

The FDIC-Insured Savings account option deposits funds in a bank account insured by the Federal Deposit Insurance Corporation (FDIC). This option is designed for Account Owners who prefer to keep their savings in a stable account rather than invest in the market.

Balances in the FDIC-Insured Savings account earn interest and are insured by the Federal Deposit Insurance Corporation (FDIC) up to the applicable federal limits. Unlike investment portfolios, the value of the savings account does not fluctuate with market performance.

Account Owners or their Authorized Representative can set up an investment profile and choose their funds through the online account portal. Click “Accounts” in the top navigation bar. If you have not yet established your investment selections, you will see the “Investment Account Setup” button. Click this button for a step-by-step guide.

The Checking Account option provides convenient access to funds for everyday expenses. Offered through Fifth Third Bank, N.A., this option allows Account Owners to use a debit card and make cash withdrawals.

Balances in the Checking Account earn interest and are insured by the Federal Deposit Insurance Corporation (FDIC) up to the applicable federal limits. Account Owners can monitor account activity online and receive alerts, providing flexibility and control while continuing to save for the future.

Yes, federal rules allow Account Owners to change investment selections two (2) times per calendar year.

A Systematic Exchange Program (SEP) allows Account Owners to move funds automatically on a regular basis from one investment option in their ABLEnow account to one or more other investment options. This approach allows contributions or existing balances to be invested gradually over time rather than all at once.

When established at account opening or with new contributions, a Systematic Exchange Program does not count toward the two allowed exchanges per calendar year. The Systematic Exchange Program does not eliminate investment risks and does not guarantee a profit or protect against loss.

Details on ABLEnow investment objectives, guidelines and performance standards are available in the Statement of Investment Policy and Guidelines (pdf).

An ABLEnow account is generally disregarded when determining eligibility for federal benefits, with two exceptions for individuals receiving Supplemental Security Income (SSI):

1. Balances over $100,000. For the purposes of determining eligibility for SSI, any ABLEnow funds above $100,000 are considered an asset and may reduce or suspend benefits. Balances up to and including $100,000 are disregarded.
2. Withdrawals for housing. Any withdrawal intended for housing that is not spent in the same calendar month is considered an asset and may reduce or suspend SSI benefits.

ABLEnow account balances do not affect Medicaid benefits, regardless of the amount.

An ABLEnow account is generally disregarded when determining eligibility for benefits provided by the Commonwealth of Virginia.

Residents of other states should check with their state benefits agencies to determine if an ABLEnow account affects any state-based disability benefits.

No. Individuals do not need to receive disability benefits to be eligible for an ABLEnow account. Learn more on the Eligibility page.

Yes, individuals with a disability can work and have an ABLEnow account, as long as they meet the program’s eligibility requirements.

Working Account Owners may also be eligible to contribute above the annual contribution limit through the ABLE to Work provision.

Unless required by federal law, the Virginia Department of Medical Assistance Services (DMAS) may not pursue Medicaid recovery claims against the ABLEnow or ABLEAmerica accounts of Virginia residents.

For customers who received Medicaid benefits outside Virginia during the time they had an ABLEnow or ABLEAmerica account open, that state’s Medicaid program can file a claim for some amount of repayment upon death. Before that happens, funds from the account may be used by their estate to repay any outstanding Qualified Disability Expenses, including funeral and burial costs.

An Entity 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.

The Entity can serve as the Authorized Individual on ABLE Accounts if the Entity is serving as an eligible individual’s agent under power of attorney, a conservator or legal guardian, or representative payee appointed by the Social Security Administration.

An individual with significant responsibility and authorization to control, manage, or direct the Entity. A Control Person may include, but is not limited to, the: Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President, Treasurer, Executive Director/Director of a government agency, or any other individual who regularly performs similar functions. 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.

A Team Member is someone who can open, manager or view their client’s ABLEnow accounts. Each entity can set the access level for each of their Team Members, based on their roles.

Yes. You can use an ABLEnow account alongside other types of trusts and accounts.

Which option is most appropriate depends upon individual circumstances. For many individuals and families, it may make sense to have both an ABLE account and a Special Needs Trust.

Yes. Families can transfer funds from a 529 college savings plan to an ABLEnow account without incurring any tax or penalty. The transfer amount cannot exceed the annual ABLE contribution limit, including any amounts previously contributed to the ABLEnow account.

Both accounts must have the same beneficiary, or the ABLEnow beneficiary must be an ABLE-eligible ”Member of the Family” of the 529 beneficiary, as defined in Section 529 of the Internal Revenue Code.

Yes. Eligible individuals can transfer or roll over funds from an existing ABLE account to an ABLEnow account without incurring tax or penalty. The rollover can include entire balance of your existing ABLE account, but the original ABLE account must be closed.

Both accounts must have the same beneficiary, or the ABLEnow beneficiary must be an ABLE-eligible “Member of the Family” (brother, sister, stepbrother or stepsister) of the original ABLE Account Owner as defined in Section 529A of the Internal Revenue Code. Only one rollover is allowed per beneficiary in a 12-month period.

An Account Owner or their Authorized Individual may add an Interested Party to the ABLEnow account. Interested Parties can receive information about the account and call to ask questions, but they cannot make changes to the account or request transactions.

An Account Owner or their Authorized Individual may designate a Successor Account Owner to assume control of the ABLEnow account upon the Account Owner’s death. The Successor Account Owner must be a sibling of the Account Owner and meet ABLE eligibility requirements. The designation must be made during the Account Owner’s lifetime, though it does not take effect until after their death.

An Account Owner or their Authorized Individual may designate a Successor Authorized Individual. This person or entity will serve as the replacement Authorized Individual if the current Authorized Individual is removed, resigns, becomes incapacitated, or passes away.

When an Account Owner passes away, ABLEnow is here to help. Visit the Reporting the Death of an Account Owner page for more information.