What happens if the beneficiary is no longer eligible for an account?

We recognize that sometimes conditions are considered to be a disability by Social Security, and sometimes they are not. When you no longer qualify for an ABLE account, you should log in to your account dashboard and update your eligibility status from the settings menu.

Note: If the beneficiary meets eligibility requirements for any part of the calendar year, they are qualified for the entire year. Your account will remain open and, as standard for an ABLE account, your funds will not to be considered an asset. You can continue making contributions until the next calendar year.

Note: Once you no longer meet the eligibility guidelines for ABLE, all withdrawals will be treated as non-qualified withdrawals. The earnings portion of your withdrawal may be subject to income tax and a 10% federal tax penalty. Non-qualified withdrawals may affect eligibility for Supplemental Security Income (SSI) and other federal benefits.

Your ABLE account will automatically close when the full balance is withdrawn. Alternatively, you may choose to leave your ABLE account open, and simply update your account’s settings when you become eligible once again.