On March 13, 2020, the Social Security Administration (SSA) clarified that “for ABLE purposes, food is considered a qualified disability expense (basic living expense), but not a housing expense. See SSA’s Program Operations Manual System (POMS) SI 01130.740 Achieving a Better Life Experience (ABLE) Account. Please note that the IRS provides guidance on qualified disability expenses for tax and ABLE program qualification purposes.
Many account owners and authorized individuals want to have SSA benefits – especially SSI – direct deposited into their ABLE accounts. They also want assurance that they can move benefits that were deposited into another checking account into an ABLE account. The SSA just updated its POMS to confirm that ABLE accounts are acceptable accounts for direct deposit of SSA payments.
In the fall of 2019, we sent out a survey to gather more information and insights so that we can better provide for eligible current and future account holders.2
Who are NC ABLE account holders? They are children, young adults, working adults, and professionals.
- 97% would recommend the NC ABLE Program to others.
- 91% found the enrollment process to be fairly easy.
- 79% find the investment options fitting with their goals and risk level.
- 33% use their NC ABLE account monthly for eligible expenses.
- What is most important to our NC ABLE account holders?
- Preservation of SSI and/or Medicaid
- Improved financial independence
Each participant’s is unique, and we invite you to share your story. We’d like to hear from you! Please send an email to NCABLE@nctreasurer.com if you are interested in being a part of an upcoming newsletter.
What are eligible expenses?
Funds held in an NC ABLE account may be used for qualified disability expenses (QDEs) by the account holder. QDEs are broadly defined as expenses that “relate to the blindness or disability of the designated beneficiary [i.e., account owner] of an ABLE account, including expenses that maintain or improve “health, independence or quality of life.”3
- Examples of qualified disability expenses include, but are not limited to3:
- Education
- Housing
- Transportation
- Employment training and support
- Assistive Technology and related services
- Health
- Prevention and wellness
- Financial management and administrative services
- Legal fees
- Expenses for oversight and monitoring
- Funeral and burial expenses
- Basic living expenses
Discovering your opportunities with the NC ABLE Program
Achieving a Better Life Experience (ABLE) accounts are designed for those with the occurrence of a disability before the age of 26. The federal legislation was signed into law by President Obama in 2014, and the North Carolina ABLE Act followed in 2015. NC ABLE joined the National ABLE Alliance which is a partnership of States dedicated to providing those living with disabilities with an ABLE investment product that offers multiple investment options at low cost.
The NC ABLE Program was launched to the public in 2017 and allows eligible individuals the opportunity to save and fund a variety of qualified disability expenses while maintaining Medicaid, SSI1 and other public supports.
Since its launch, the NC ABLE Program has grown primarily through grassroots efforts and has benefitted nearly 1,000 account holders by providing an opportunity to discover a path to financial independence.
Click here more about the NC ABLE Program.
The makeup of the NC ABLE Program Board of Trustees is mandated by the NC ABLE Act, N.C. G.S. 147- 86.52. The Board is composed of six members. The State Treasurer serves as chair, and two members serve ex-officio: the NC Commissioner of Banks, or designee, and the Secretary of the NC Department of Health and Human Services, or designee. One member is appointed by the Governor. One member is appointed by the General Assembly, upon recommendation of the Speaker of the House of Representatives. One member is appointed by the General Assembly, upon recommendation of the President Pro Tempore of the Senate.
[video:https://www.youtube.com/watch?v=Wcdpd0JMfn0]
State Treasurer Dale Folwell talks about the importance of the ABLE Act for disabled individuals and families on WFMY News 2.
1ABLE account balances up to $100,000 are excluded from assets for the purpose of determining SSI eligibility.
2Information shown is based on all respondents to a survey sent to NC ABLE account holders in November 2019.
3For more information, please refer to the proposed Treasury Regulations at Federal Register, Vol. 80, No. 119 (June 22, 2015) (35607-35608 and 35612) and SSA’s POMS SI 01130.740 Achieving a Better Life Experience (ABLE) Account.