ABLE accounts help provide financial security for individuals with disabilities by allowing earnings in the account to grow free from federal taxes as long as withdrawals are used for qualified disability expenses. Individuals can invest up to $15,000 per year (for 2019) in the account. If withdrawals are used for purposes other than qualified disability expenses, the earnings will be subject to a 10% federal tax penalty in addition to federal and, if applicable, state income tax.
ABLE accounts are available to individuals whose disability developed before age 26 and their families. Individuals who meet the age requirement and already receive SSI or SSDI benefits are automatically eligible. Other individuals who obtain a letter from a licensed physician certifying significant disabilities are also eligible.
Families and individuals with disabilities can use funds in an ABLE account for qualified disability expenses including basic living expenses, housing and health care.
ABLE account application (PDF)
Saving for a better life experience (PDF)
Learn how offereing ABLE accounts can strengthen client relationships and build your practice.
Show your clients how ABLE accounts can help individuals maintain their independence and save for the future.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and ABLEAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. ABLEAmerica is distributed by American Funds Distributors, Inc. and sold through unaffiliated intermediaries.
You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will at any time.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.