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- ALR
- Benefits
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- Eligibility
- Fees
- General
- Gifting
- How it Works
- Linking Bank Accounts
- Opening an Account
- Prepaid Card
- Qualified Expenses
- Successors and Estates
- Tax Info
- Do I have to pay taxes on my account?
- As long as the money in your ABLE account is used for eligible expenses, it won’t be counted as income for your state or federal taxes. If a purchase doesn’t qualify as an eligible expense, you’ll have to pay taxes on the earnings and a 10% penalty on the earnings. If you want to know more about... Read more
- How is this different from a Special Needs Trust or Pooled Trust?
- An ABLE account won’t replace a Special Needs Trust or Pooled Trust. There are some key differences that are meant to give people with disabilities and their families more options. With an ABLE account: There are fewer expenses than setting up a trust. The beneficiary owns the funds and can... Read more
- Do I have to file separate taxes for each ABLE account?
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Each beneficiary account is treated separately. Every account is subject to a separate $18,000 annual contribution limit (or more if the beneficiary has earned wages for that year), and each ABLE account will receive separate tax documents.
- What is IRS Form 1099-QA?
- If you make a withdrawal from your account, you will receive the IRS Form 1099-QA, which is a tax form that details all of the withdrawals you made throughout the tax year from your account. This statement reports withdrawals from the ABLE account in the prior calendar year. You only receive a... Read more
- When is IRS Form 1099-QA available?
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The plan administrator must send the 1099-QA by January 31, so you should receive the form no later than early February following the close of the tax year. You will receive it via mail or electronic delivery based on communications preferences.
- What is IRS Form 5498-QA?
- If you make a contribution to your account, you will receive IRS Form 5498-QA, which is a tax form that details all of the contributions you made throughout the tax year to your account. This form reports ABLE account contributions, rollovers and direct program-to-program transfers in the prior... Read more
- When is IRS Form 5498-QA available?
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The plan administrator must send the 5498-QA by March 15, so you should receive the form no later than late March following the close of the tax year. You will receive it via mail or electronic delivery based on communications preferences.
- What do I need to do with my IRS Form 5498-QA form?
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Keep this form in your records for future reference. You're not required to file it with your tax return.
- What is the Oregon income tax credit?
- All Oregon taxpayers who contribute to one or more Oregon ABLE Savings Plan accounts can receive tax benefits up to the maximum allowable amount for that tax year. They can receive a state income tax credit up to $340 for joint filers and up to $170 for single filers on contributions made to an... Read more
- What kind of benefits do I get?
- One of the main benefits of having an ABLE account is being able to save for eligible expenses and invest for the future in a tax-advantaged account. The account’s growth is tax-free and you may qualify for a state income tax deduction, depending on where you live, As long as your balance stays... Read more
