Able Account Oregon: A Savings Plan for People with Disabilities

Able Account Oregon is a unique savings plan designed specifically for people with disabilities, allowing them to save up to $14,000 per year without affecting their Supplemental Security Income (SSI) benefits.

This plan is administered by the Oregon Department of Human Services and is available to Oregon residents who receive SSI benefits.

By utilizing the Able Account Oregon, individuals with disabilities can save for future expenses, such as medical equipment, home modifications, or even a down payment on a home.

Savings can be withdrawn for eligible expenses at any time, providing peace of mind and financial security for individuals and their families.

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The Oregon ABLE Savings Plan is a great option for individuals with disabilities to save money without affecting their eligibility for government benefits.

The plan has a state account limit of $400,000 and accepts annual contributions of up to $19,000, which is a federal limit required of all states.

You can open an account with a minimum deposit amount of more than $5, and there's no minimum number of contributions required.

The Oregon ABLE Savings Plan is FDIC insured up to $250,000 through BNY Mellon.

Here are the key details of the Oregon ABLE Savings Plan:

If you're employed and not contributing to a defined contribution plan, deferred compensation plan, or annuity, you can contribute an additional amount to your ABLE account, up to the lesser of your annual salary before tax or $15,060.

The Oregon Savings Plan offers a comprehensive solution for individuals with disabilities to save and manage their finances. The plan is open for enrollment and has a state program manager, Vestwell, and investment manager, Vanguard.

The plan allows for contributions up to $19,000 annually, with an additional $15,060 possible for employed individuals who are not contributing to a defined contribution plan, deferred compensation plan, or annuity. This additional contribution can be up to the lesser of their annual salary before tax or $15,060.

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You can open an account with a minimum deposit of more than $5, and there is no minimum number of contributions required. The plan also offers a debit prepaid card feature and four investment options with varying risk levels.

If you're a resident of Oregon, you can take advantage of the Oregon income tax deduction, which allows for up to a $340 tax credit for contributions to the Oregon ABLE Savings Plan. This tax credit is a progressive income tax credit, meaning it has more of an impact for low- to moderate-income savers.

Here are some key details about the Oregon Savings Plan:

The plan also allows for proper account titling for a representative payee and the payment of funeral and burial expenses as a qualified disability expense (QDE) prior to account freeze, if available.

The Oregon Savings Plan offers a range of investment options to account holders. Each state's ABLE program designates investment options available to account holders.

Changes to your investment strategy can be made, but only up to twice annually. This allows you to reassess and adjust your investments as needed.

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To be eligible for an ABLE account in Oregon, you must have a disabling condition that began before age 26. You must also satisfy Social Security's criteria regarding significant functional limitations stemming from the disabling condition.

You can establish an ABLE account with the assistance of a parent, conservator, guardian, or agent under a power of attorney, if needed. A first party Special Needs Trust (SNT) must be established before you reach age 65, but there are no age limits for creating third party trusts.

Here are some key eligibility and establishment facts to keep in mind:

To be eligible for an ABLE account, an individual must have a disabling condition that began before the age of 26. This is a key requirement to qualify for an ABLE account.

The disability onset must meet Social Security's criteria regarding significant functional limitations stemming from the disabling condition. This is a crucial factor in determining eligibility.

Individuals can establish a first-party Special Needs Trust (SNT) before reaching the age of 65, but this is only possible if the trust is funded with assets belonging to the beneficiary. There are no age limits for creating third-party trusts, which are funded with assets belonging to someone other than the beneficiary.

Here are the specific age-related eligibility requirements:

ABLE accounts can be created and managed by the beneficiary, subject to capacity. If they need assistance, the account can be established and/or managed by their parents, conservator/guardian, or agent under a power of attorney.

A first party SNT may be established by the beneficiary, their parents, grandparents, conservator/guardian, or the court. Management of SNTs is handled by a designated trustee.

ABLE accounts offer an extra layer of support for individuals with disabilities, allowing them to save for the future without jeopardizing their eligibility for certain benefits.

Having multiple ABLE accounts is possible, but the total contributions across all accounts cannot exceed the annual contribution limit.

The fees for an ABLE account in Oregon are relatively straightforward. There's a $35 annual fee, plus a fee ranging from 0.3% to 0.37% of the account balance.

If you want to receive paper statements, that'll add a $10 fee to your annual bill. And if you need to disburse funds by check, you'll pay $2.50 per transaction.

The contribution limits for an ABLE account in Oregon are generous. You can contribute up to $14,000 per year, which is tied to the federal annual gift tax exclusion.

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When it comes to fees, it's essential to understand what you're getting into. The annual fee for this particular service is $35. This may seem like a small price to pay, but it's something to consider.

If you want to receive paper statements, be prepared to pay an extra $10 delivery fee. This is a one-time fee, but it's still something to think about.

Check disbursement fees can add up quickly, with a $2.50 charge per transaction. I've seen this fee pop up unexpectedly in the past, so it's crucial to keep an eye on your account.

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Contribution Limits are an important consideration when planning for your ABLE account.

There are no limits to how many SNTs an individual may have or to how much each trust may hold.

Individuals can only have one ABLE account, and total annual contributions are pegged to the annual federal annual gift tax exclusion, which was $14,000 for 2017.

Any amount over $100,000 in an ABLE account counts towards the individual’s $2,000 resource limit for SSI and Medicaid eligibility.

This means that if an individual has more than $100,000 in their ABLE account, their SSI payments will be suspended until the account balance decreases to less than $100,000.

The good news is that during the SSI suspension period, the individual’s SSI-linked eligibility for Medicaid continues uninterrupted.

Total lifetime contributions to an ABLE account are tied to each provider state’s limit on total contributions to its 529 College Savings Plan, which varies from approximately $250,000 to $450,000.

These lifetime limits would not be reached for decades, even if no disbursements are made from the ABLE account during the accumulation period.

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