The following states have created webpages to provide updates on the status of their ABLE programs. Those marked with an asterisk have launched their ABLE programs.
- *Alabama - Launched February 26, 2017
- *Alaska - Launched December 15, 2016
- California - The California ABLE Act Board has also created a Facebook page to communicate with stakeholders.
- *Florida - Launched July 1, 2016 - Open to Florida residents only
- *Illinois - Officially launched January 30, 2017
- *Iowa - Launched January 26, 2017
- *Kansas - Launched January 26, 2017
- *Kentucky - Launched on December 13, 2016 - Open to Kentucky residents only
- *Michigan - Launched November 1, 2016
- *Minnesota - Launched January 26, 2017
- *Missouri - Launched on April 24, 2017 - Open to Missouri residents only
- *Nebraska - Launched June 30, 2016
- *Nevada - Launched January 26, 2017
- New Hampshire
- New Mexico - New Mexico is not establishing its own ABLE program but providing information to residents who wish to open an ABLE account in another state.
- New York
- *North Carolina - Launched January 26, 2017
- North Dakota - North Dakota is not establishing its own ABLE program but providing information to residents who wish to open an ABLE account in another state.
- *Ohio - Launched June 1, 2016
- *Oregon - Two programs launched on December 6, 2016: Oregon ABLE Savings Plan for Oregon residents and ABLE for ALL Savings Plan for residents of any state
- *Pennsylvania - Launched on April 3, 2017
- *Rhode Island - Launched on December 16, 2016
- South Carolina
- South Dakota - South Dakota is not establishing its own ABLE program but providing information to residents who wish to open an ABLE account in another state.
- *Tennessee - Launched June 13, 2016
- *Vermont - Launched February 22, 2017 - Open to Vermont residents only
- *Virginia - Launched on December 19, 2016
- Wisconsin - Wisconsin is not establishing its own ABLE program but providing information to residents regarding opening an ABLE account in another state.
ABLE Program Comparison
NDSS has created this chart comparing details and features of the state ABLE programs that have launched. NDSS does not endorse any ABLE program, but provides this information to help potential ABLE account owners determine which program best fits their needs and priorities.
State Tax Deductions for Contributions to ABLE Accounts
Earnings from ABLE funds grow tax-deferred and are tax-free if used for qualified disability expenses. Contributions to ABLE accounts are made on an after-tax basis. However, some states have passed legislation that allows state tax deductions to their residents for contributions to ABLE accounts. These states include:
- Iowa - For 2016, contributions of up to $3,188 per beneficiary by an individual, and up to $6,376 per beneficiary by married taxpayers filing jointly who each make their own contributions, are deductible in computing Iowa taxable income. The maximum deduction increases each year with inflation.
- Maryland – Up to $2500 for any taxable year per qualified designated beneficiary may be subtracted from the federal adjusted gross income of a resident to determine Maryland adjusted gross income. Anyone who contributes to the ABLE account may get the deduction.
- Michigan – Michigan tax payers who contribute to an ABLE account may get a deduction of up to $5,000 for a single return or $10,000 for a joint return per tax year.
- Missouri - Annual contributions made to the ABLE program up to and including $8000 per participating taxpayer, and up to $16,000 for married individuals filing a joint tax return, shall be subtracted in determining Missouri adjusted gross income. The deduction is available to designated beneficiary or, if the designated beneficiary is a minor or has a custodian, the deduction is available to the parent or custodian.
- Montana – Up to $3000 for single tax filers. Deduction is available to person who contributes, which must be account owner, account owner's spouse, or account owner's parent or stepparent.
- Nebraska - Contributions by anyone who files a Nebraska state income tax return are eligible to receive a Nebraska state income tax deduction for their own contributions of up to $10,000 ($5,000 if married, filing separately).
- Ohio – Up to $2000.
- Oregon - For the current tax year of 2016, contributions to accounts in Oregon for beneficiaries under the age of 21 are tax deductible up to $4,620 for joint filers and $2,310 for single filers.
- South Carolina – ABLE bill allows state residents to deduct contributions made to ABLE accounts in or outside of South Carolina up to the limit of maximum contributions allowed to such accounts under Section 529A of the federal Internal Revenue Code of 1986, as amended, including funds transferred to an investment trust account from another qualified plan, as allowable under Section 529A of the federal Internal Revenue Code of 1986, as amended.
- Virginia - Up to $2,000 per contributor.
- Wisconsin – ABLE bill was repealed but tax deduction extended to out-of-state ABLE accounts for Wisconsin residents. Any amount that is deposited by an account owner or any other person for the taxable year in which the contribution is made into an ABLE account may be subtracted from federal adjusted gross income in the calculation of the taxpayer's Wisconsin taxes.
One state allows a tax credit:
- Utah – A Utah taxpayer who contributes to an ABLE account can claim a 5 percent Utah state income tax credit on his or her annual contribution.
For More Information
For more information, contact NDSS at [email protected].
Page last updated: April 24, 2017