Achieving a Better Life Experience (ABLE) Accounts

Achieving a Better Life Experience (ABLE) Accounts A. An ABLE account is a type of tax-advantaged account that enables eligible individuals with disabilities to: 1. Save money that is tax-exempt, 2. Withdraw the funds to use for certain qualified disability expenses, and 3. Experience Limited impact on eligibility for Medicaid and Supplemental Security Income (SSI). B. The Mississippi Department if Rehabilitation Services (MDRS) has full responsibility for administering the ABLE program, including making the assessment on whether the individual is eligible to open an ABLE account. C. The designated beneficiary is the eligible individual who establishes and owns the ABLE account. D. The designated beneficiary is the owner of an ABLE account, regardless of whether someone else has signatury authority over the account. E. An eligible individual can open an ABLE account through an ABLE Program in any state that has a qualified ABLE program; however, the eligible individual can be the designated beneficiary of only one ABLE account. F. Contributions to an ABLE account and earnings (interest, dividends, etc.) an ABLE account receives are excluded as income to the designated beneficiary. This includes income distributions from a Special Needs Trust or Pooled Trust that is deposited into an ABLE account of the SNT or pooled trust beneficiary. G. ABLE account balances are fully excluded as a resource for Medicaid purposes. H. Distributions from an ABLE account do not count as income of the designated beneficiary for ABD; instead, they are a conversion of a non-countable resource to another form of resource that is counted or excluded as follows: 1. Qualified Disability Expenses (QDE’s) are related to the blindness or disability of the designated beneficiary and are for the benefit of the designated beneficiary. In general, a QDE includes, but is not limited to, the types of expenses shown below: a) Education, b) Housing (mortgage, property insurance, property taxes, rent and utilities, i.e., heating, fuel, gas, electricity, water, sewer and garbage removal), c) Transportation, d) Employment training and support, e) Assistive technology and related services, f) Health, prevention and wellness, 2. Distribution from an ABLE account are not countable as a resource for ABD purposes if used for QDEs in the month of the distribution. 3. Distributions retained after the month of distribution are not counted as resource unless they are spent on a non-QDE. 4. Distributions spent on a non-QDE are a resource in the month they were spent. I. Distributions from an ABLE account that are used for QDEs are not included in the beneficiary’s taxable income for MAGI. However, the taxable portion of a distribution used for a non-QDE is countable as income for MAGI determinations. J. ABLE account distributions that are used for a QDE are disregarded from an individual’s total income used to calculate Medicaid Income. If the distribution is not used for a QDE, it is a resource in the month the funds are misspent. K. The Mississippi Division of Medicaid does not seek direct recovery of medical expenses paid for the beneficiary from an ABLE account at the beneficiary’s death. However, funds in an ABLE account at the beneficiary’s death may become part of the beneficiary’s probate estate for purposes of estate recovery.