ABLE account definition
Examples of ABLE account in a sentence
If the account that receives the transfer is not treated as an ABLE account, the account will not be eligible for the benefits of ABLE accounts.
Under Section 529A, following the death of the Beneficiary, any state may file a claim against the Beneficiary or the STABLE Account itself for the amount of the total medical assistance paid for the Beneficiary under the state’s Medicaid plan after the establishment of the STABLE Account (or any ABLE account from which amounts were rolled or transferred to the current STABLE Account).
This includes Rollovers from a Sibling of the Beneficiary’s ABLE account to an SSI recipient’s ABLE account.
In addition, prior to January 1, 2026, a transfer of money from the Account to an ABLE account for the Beneficiary or a Member of the Family of the Beneficiary, is a Federal Qualified Rollover Distribution provided that the transfer when added to all other contributions made to the ABLE account in the taxable year, does not exceed the limitation in Section 529A(b)(2)(B)(i) of the Code.
A prior ABLE account that has been closed does not prohibit the subsequent creation of another ABLE account for the same Account Owner.