Glossary
Uncertain about a word or phrase?
Here’s a glossary of terms you might encounter when opening and managing an ABLEnow account.
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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.
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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.
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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.
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The ABLEnow Account Owner is the Eligible Individual with a disability (also called the Designated Beneficiary).
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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.
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ABLEnow is the national, direct-sold ABLE savings program offered by the Commonwealth of Virginia.
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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.
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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.
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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.
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ABLE accounts are tax-advantaged savings accounts for eligible individuals with disabilities.
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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.
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A contribution is money added to an ABLEnow account.
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ABLEnow is administered by Commonwealth Savers, formerly known as Virginia529, an independent agency of the Commonwealth of Virginia.
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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.
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With direct deposit, a paycheck, Social Security income or other recurring electronic payment is automatically deposited into an ABLEnow account.
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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.
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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.
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The Eligible Individual (sometimes called the Designated Beneficiary) is the person with a disability who is the ABLEnow Account Owner.
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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.
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Fifth Third Bank is the banking partner for the ABLEnow Checking Account.
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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.
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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.
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An investment portfolio is a collection of assets. Investing can build wealth over time, but it also involves risk.
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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.
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A mutual fund is a specific investment portfolio of stocks, bonds, or other securities, overseen by a professional money manager.
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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.
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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.”
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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).
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The program description is an important document that provides detailed information and rules on the ABLEnow program.
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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.
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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.
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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.
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Regularly scheduled withdrawals from an ABLEnow Account (investment option or checking account option). An account can have up to two systematic withdrawals set up.
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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.
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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).
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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.
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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.
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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.
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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.
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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.
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1099-QA is an Internal Revenue Service (IRS) tax form that reports all the withdrawals from the ABLE account during the previous tax year.
Can’t find what you’re looking for?
Explore the FAQs*This glossary is for illustrative purposes and is not a full list of terms related to ABLEnow account usage. For the legal definition of these terms and to see other ABLEnow program rules, review the Program Description.
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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).