Author: Diane Stewart, Enable Outreach Specialist, First National Bank of Omaha

From building your savings to managing your finances, the Enable Alabama team is here to help you get the most out of your account. To keep you informed about all things Enable Alabama we’ve created a list of Enable Alabama ABC’s – because understanding key terms should be as easy as 1, 2, 3.

(ABLE) Achieving a Better Life Experience Act
In December 2014 the ABLE Act was signed into law, authorizing individuals with disabilities to open tax-exempt savings accounts to save for disability-related expenses without impacting eligibility for resource-based benefits. The Act permits individuals with disabilities to save more than a total of $2,000 in assets (cash, savings, etc.) in their name in a qualified ABLE account.

Account Minimum/Maximums  
The minimum contribution to your Enable Alabama account is $50, or $25 through an automatic investment plan or payroll deduction. Accounts have a $400,000 maximum limit per Account Owner. Balances of up to $100,000 will be disregarded for purposes of determining eligibility to receive benefits under the Supplemental Security Income Program.

Account Owner or Authorized Individual

An account may be opened to save for Qualified Disability Expenses by an Eligible Individual or an Authorized Individual on behalf of an Account Owner.

Automatic Investment Plan
AIP is a tool to help account owners save, no matter how busy life gets. It allows you to automatically contribute to your Enable account directly from your personal bank savings account – ensuring you never miss a contribution.

Account owners can also make automatic contributions to their Enable Alabama account using payroll direct deposit of after-tax dollars.

Contribution Limits
The ABLE Act places limits on the total account balance as well as the amount that can be contributed annually. Total contributions made into your account, regardless of who made the contribution, cannot exceed $15,000 per calendar year In addition, federal law allows certain Account Owners to make contributions beyond that amount, up to the lesser of (a) the compensation included in the Account Owner’s gross income for the year; or (b) the federal poverty line for a one-person household, as determined for the calendar year preceding the calendar year in with the taxable year begins (“ABLE to Work” contributions).

Gifting
Friends and family of Enable Alabama account owners can provide gift contributions to their loved ones’ Enable accounts. For more information on gifting visit: /jahia/cms/{mode}/{lang}/sites/ALB/home/basics/gift.html.

Investment Options
The Enable Savings Plan Alabama offers you a selection of five Investment Options. Account owners can choose the option that works best for them, and are able to move money from one Investment Option to another twice per calendar year. For a full overview of investment options visit: /jahia/cms/{mode}/{lang}/sites/ALB/home/investments.html.

Qualified Disability Expenses
Under the Able Act, a qualified disability expense is one related to the blindness or disability of the designated beneficiary. This covers a wide range of categories that extend beyond medical expenses, including those such as education, housing, transportation, financial management and administrative services and basic living expenses. For the full list of qualifying expenses visit: secure.ssa.gov/poms.nsf/lnx/0501130740

Standing Allocation
When selecting an investment option, the initial and all future contributions will be invested based on the percentages you select for your initial contribution. The percentages you select for your account are collectively called a standing allocation.

Systematic Withdrawal
This service allows you to preschedule withdrawals from your account over time to send to yourself or another third party. For example, you can use this service to pay a monthly bill. 

Have additional terms you need clarification on? Click here to contact us or give us a call at 1-866-833-7949.