It is up to you to track how you spend the money in your ABLEnow account.
Each year, ABLEnow will report the total amount of distributions to the Internal Revenue Service (IRS) as part of annual tax reporting. The IRS may investigate the distributions from an ABLEnow account to determine whether a withdrawal was for a Qualified Disability Expense.
In addition, ABLEnow will report to the Social Security Administration the date and amount of each distribution from an ABLEnow account. If the individual with a disability receives Supplemental Security Income (SSI) or Medicaid, the Social Security Administration may investigate any distribution to determine whether the withdrawal was for a Qualified Disability Expense.
For this reason, we strongly recommend that you keep records and receipts on how you are spending the money in your ABLEnow account.