Understanding Able Account Florida Options

If you're a Florida resident with a disability or a family member who needs care, you're likely familiar with the complexities of healthcare costs. In Florida, there are several options available to help alleviate some of this financial burden.

To begin with, Florida offers a unique program called the ABLE account, which stands for Achieving a Better Life Experience. This program allows individuals with disabilities and their families to save for expenses related to their care without jeopardizing government benefits.

One of the key benefits of an ABLE account is that it allows you to save up to $15,000 per year, tax-free, for qualified disability expenses. This can include things like medical expenses, education, and even housing costs.

In Florida, there are two types of ABLE accounts: the Florida 529 Savings Plan and the Achieving a Better Life Experience (ABLE) Program. Both options offer a range of benefits, but it's essential to understand the differences between them to make an informed decision.

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You can open an ABLE account as an individual with a disability, a parent of the individual, a guardian or conservator, or an agent designated through a power of attorney.

To open an account, you'll need to provide personal information, such as your name, address, date of birth, and Social Security number. You'll also need financial information, like your bank account number and routing number, for the initial deposit.

You can choose to designate an authorized legal representative to help manage your account and identify a beneficiary. You'll also have options for the type of account features you want, such as a debit card or pre-paid card.

The annual deposit limits are subject to change, but you can check the ABLE Contribution Limits webpage for up-to-date information. Employed account owners may be eligible to contribute more, so it's worth exploring those options.

Up to $100,000 of ABLE funds is not a countable resource for Supplemental Security Income beneficiaries. Anyone can deposit money directly into an ABLE account, including the account owner, family, friends, or employers, and even a special needs or pooled trust.

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Contributions can be made using various methods, such as checks, direct deposit, electronic fund transfers, Ugift, or other gifting programs. The total ABLE balance limit is the same as the state's limit for education-related 529 savings accounts, ranging from $235,000 to $596,925 in 2024, with an average balance limit of $450,000.

Here are the types of people who can open an ABLE account:

Note: As of January 1, 2026, the age-of-disability-onset restriction will increase, allowing those who became disabled before turning 46 years old to open ABLE accounts.

To create an ABLE account in Florida, you'll need to provide personal and financial information, such as your name, address, date of birth, Social Security number, bank account number, and routing number.

You can open an ABLE account online, and it's recommended to start with the savings option and debit card, as you can always choose to invest later.

Florida has specific rules regarding withdrawals from an ABLE account, including electronic transfers to a bank account or issuing paper checks.

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Creating an ABLE account is a straightforward process that can be completed online. Most ABLE accounts are opened online, requiring personal information such as name, address, date of birth, and Social Security number.

You'll also need financial information, including your bank account number and routing number, for the initial deposit to open the account. An authorized legal representative can help manage the account and identify a beneficiary.

You can choose the type of ABLE account, such as a savings or checking account, and select features like a debit card or prepaid card, depending on the plan you choose. It's perfectly fine to start with the savings option and debit card and add investment options later if you decide to do so.

The annual deposit limits are subject to change each calendar year, and employed account owners may be eligible to contribute even more. You can check the ABLE Contribution Limits webpage for up-to-date information on annual contribution limits and other important details.

In 2024, the ABLE plan limits ranged from $235,000 to $596,925, with an average balance limit of $450,000. This means that you can save up to this amount without affecting your eligibility for public benefits like Medicaid and Supplemental Security Income (SSI).

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Managing an ABLE account can be a bit tricky, but don't worry, I've got the lowdown. Each state has its own rules, so it's essential to know what to expect.

Florida allows electronic transfers to a bank account or issues paper checks to pay expenses directly to third parties. Electronic transfers and up to two checks per month are free, but additional checks cost $5.00 each.

Nebraska also makes electronic transfers to a bank account or issues paper checks, and you can even arrange prescheduled withdrawals. Withdrawals from the checking account option can be made by check or debit card.

Ohio offers a range of withdrawal options, including electronic transfer to a bank account, paper check, or STABLE debit card. This flexibility can be really helpful for managing expenses.

Tennessee, on the other hand, currently only makes disbursements in the form of a paper check to the beneficiary. This might be a bit more cumbersome, but it's still an option.

It's worth noting that states are constantly learning from each other's experiences, so the best option for managing an ABLE account may change over time. To stay up-to-date, you can check out the ABLE National Resource Center or a similar resource maintained by The Arc.

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Living with a disability can be expensive, and saving money is crucial to maintaining independence. Florida residents can take advantage of an ABLE account to save for expenses without risking public benefits.

Fees for ABLE accounts vary by state, and Florida is no exception. Florida waives maintenance fees until July 1, 2017, but after that, there will be a $2.50 monthly fee if the beneficiary chooses electronic withdrawals, and an extra $10 will be charged annually for paper check disbursements.

Investment fees can also add up, ranging from 0% to 0.63% depending on the investment choices. It's essential to understand the fees associated with an ABLE account before opening one.

Here's a breakdown of the fees for some states:

It's essential to review the fees associated with an ABLE account before opening one to ensure it meets your financial needs.

ABLE funds can be used for qualified disability expenses, which include basic living expenses like food.

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Funds in an ABLE account can be used for a wide range of expenses, such as education, housing, transportation, and employment training and support.

The Social Security Administration considers food a qualified disability expense, showing that ABLE funds offer flexibility for families.

ABLE funds can be used to purchase a vehicle or a home that the account owner will use, but it's essential to consult with a legal expert to ensure compliance with state laws and regulations.

A person can have an ABLE account, a special needs trust, or both, and an ABLE account can work well on its own or in combination with a trust account.

Having an ABLE account and a trust can be beneficial, as a trust can deposit funds into an ABLE account to cover shelter costs without reducing SSI payments.

To understand the benefits and differences between ABLE accounts and trusts, it's best to review the comparison chart or consult the Understanding ABLE Accounts, Special Needs Trusts and Pooled Trusts Decision Guide.

Before using ABLE funds, it's a good idea to seek no-cost resources for qualified disability expenses first.

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Fees can be a significant consideration when it comes to account funding. Fees vary from state to state, so it's essential to understand what you're getting into.

Florida is a great example of a state that waives maintenance fees until July 1, 2017, but after that, you'll be charged a $2.50 monthly fee if you opt for electronic withdrawals. If you prefer paper checks, you'll be charged an extra $10 annually.

Nebraska takes a different approach, charging $11.25 quarterly, or $45 annually, in addition to asset-based fees ranging from 0.50% to 0.56%, depending on your investment choices.

Ohio has a tiered fee structure, with residents paying $2.50/month ($30 annually) for account maintenance and asset-based fees of 0.19% to 0.34%, based on their investment choices. Out-of-state account holders pay $5/month ($60 annually) for maintenance and asset-based fees of 0.45% to 0.60%, depending on investments.

Tennessee stands out as a state that doesn't charge for account maintenance, but still has asset-based fees ranging from 0% to 0.63%, depending on your investment choices.

Here's a quick breakdown of the fees you can expect in each state:

Medicaid and SSI recipients can use various types of accounts to manage their finances. These accounts include personal checking and savings accounts, ABLE accounts, First Party Special Needs Trusts, and Third Party Special Needs Trusts.

One key benefit of ABLE accounts is that the first $100,000 in an account is not treated as personal assets of the account's beneficiary. This means that individuals with severe disabilities can have more financial security without losing access to government services.

If an ABLE account owner passes away, Medicaid may claim reimbursement under the "Medicaid payback" rule, but only if the account owner used Medicaid services after opening the ABLE account. This rule does not apply if the account owner did not receive Medicaid.

Here are the four types of accounts that Medicaid and SSI recipients can use:

Medicaid may claim reimbursement from an ABLE account after the account owner passes away, a process known as Medicaid payback.

This payback rule only applies if the ABLE account owner used Medicaid services after opening the account.

Medicaid Buy-In premiums are deducted before any payback, so those costs will be covered first.

Some states have laws that limit Medicaid payback for ABLE account owners who use their state's ABLE plan.

An ABLE account owner can avoid Medicaid payback if they didn't receive Medicaid services, but this will depend on their individual circumstances.

If the account owner has remaining funds in their ABLE plan, they can name a beneficiary to inherit those funds.

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Medicaid and SSI recipients can leverage four different types of accounts to manage their finances effectively.

A personal checking or savings account can receive SSI payments and other earnings, which can be used for paying rent/mortgage, utilities, meals/grocery bills, and other essential expenses.

An ABLE account can be used when a personal checking or savings account is about to exceed its $2,000 total limit, allowing funds to be used for qualifying disability expenses or supplements housing expenses such as HOA dues and utilities.

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First Party Special Needs Trusts can receive funds when receiving injury settlements or other gifts in excess of $16,000, which can be used for larger expenses.

A Third Party Special Needs Trust can receive inheritances or large gifts, but only if the third party plans properly, avoiding direct payments to the special needs beneficiary.

Accounts not counted as assets are a key feature of ABLE accounts, where the first $100,000 in an account is not treated as personal assets of the account's beneficiary.

This is important because federal law generally bars individuals from receiving assistance such as Medicaid, housing aid, and Supplemental Security Income if they have more than $2,000 worth of financial assets.

Medicaid payback is a rule that may apply when an ABLE account owner passes away, requiring Medicaid to claim reimbursement for services used after opening the ABLE account.

However, if the account owner did not receive Medicaid, there is no payback.

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You can have an ABLE account, a special needs trust, or both, and even a pooled trust. A trust can deposit funds into an ABLE account to cover shelter costs without reducing SSI payments.

An ABLE account can only receive $16,000 per year, so it may make sense to create a special needs trust to transfer funds into the ABLE account. This provides more flexibility and control over funds.

There is no limit on the amount of money that can be placed into a special needs trust, but ABLE accounts have yearly contribution limits. As of 2024, the limit is $18,000 per year.

A special needs trust can transfer up to $16,000 from the trust and into the ABLE account, if there is a competent beneficiary or attorney-in-fact under a durable power of attorney. This can be done with the permission of the grantor or settlor of the special needs trust.

Funds in an ABLE account up to $100,000 are not a countable resource for Supplemental Security Income (SSI). This means that saving in an ABLE account allows people with disabilities to keep benefits if they need them.

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