Frequently Asked Questions

Funds may be used for Qualified Disability Expenses, which may include any expense related to the Account Owner as a result of living with a disability and improves their health, independence, or quality of life. These include, but are not limited to basic living expenses, education, food, housing, transportation, employment training and support, assistive technology, personal support services, health care expenses, financial management, and administrative services.

The earnings portion of ABLE Account funds used for purposes other than Qualified Disability Expenses (i.e. a Non-Qualified Withdrawal) may be subject to federal income tax and a penalty tax, as well as applicable state and local income taxes and penalties.

Yes. Housing expenses and housing-related expenses, including mortgage, rent, real property taxes, heat, fuel, gas, electric, water, sewer, and garbage services. An Account Owner should be careful to ensure that withdrawals for housing expenses occur in the same month that housing expense payments are made, as withdrawn funds retained from one month into the next might affect resource calculations for purposes of SSI and other means-tested benefit programs.

Withdrawals can be made online, by completing a withdrawal form, or by calling the Plan’s dedicated Client Services phone number. For Accounts invested in the Checking Account Option, withdrawals can also be made using the Fifth Third Bank debit card and checks. Legal restrictions may affect the availability of certain withdrawal options.

Not at the time of the withdrawal. Annually, the total amount of withdrawals will be reported to the IRS and the date and amount of each withdrawal will be reported to the Social Security Administration. It is recommended that you keep detailed records of your withdrawals and payments in case of examination by the IRS or the Social Security Administration.

Generally, upon the death of an Account Owner, the funds from an Account can be used by the estate to pay any outstanding Qualified Disability Expenses, including funeral and burial costs. If the Account Owner was receiving Medicaid benefits, the applicable state Medicaid agency may file a claim for a payback upon the Account Owner’s death after any outstanding Qualified Disability Expenses have been paid for from the Account. For an Account Owner receiving Louisiana Medicaid benefits, the Louisiana Family & Social Services Administration (FSSA), through its Estate Recovery Program may make a claim against an ABLE Account after an Account Owner’s death to recover certain medical assistance paid under Medicaid. For more information, go to https://www.in.gov/fssa If Medicaid does not recapture, Account funds generally will go to the Account Owner’s estate or to a Successor Account Owner. Account Owners are encouraged to speak with an estate planning professional regarding the consequences their death may have on their ABLE Account.