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Frequently Asked Questions

Questions about who can open and manage an ABLE account.

The LA ABLE Account must be opened directly through the Plan at able.laregents.edu or by completing and mailing a paper Enrollment Form. You cannot go to a bank or physical location to open an LA ABLE Account.

There is no fee to open an Account, and it can be opened with an initial contribution of just $1.

Certain fees may apply to the maintenance of an Account, including the following:

  • If the Checking Account Option is selected, there is a $2.00 monthly fee, which is waived if Electronic Delivery of monthly checking account statement notification is selected OR with an average monthly Account balance of at least $250 in the checking account.
  • The Annual Asset-Based Fee per Investment Option on assets per Investment Option range from 0.02% to 0.07%, depending on which Investment Option(s) are selected. The Checking Account Option is not subject to the Annual Asset-Based Fee.

If a withdrawal is not used for a Qualified Disability Expense, the earnings portion of the withdrawal is subject to income tax and the Federal Penalty Tax (an additional 10 percent penalty on the earnings portion of the withdrawal). Withdrawals not used for Qualified Disability Expenses could also affect other benefits. Speak to a tax professional and/or a benefits specialist about your specific circumstances.

Eligible Individuals can open and manage the Account for themselves. Alternatively, an Authorized Individual may open and manage an Account on behalf of an eligible minor or an eligible adult who lacks Legal Capacity, or as an agent under power of attorney for an eligible adult with Legal Capacity who is unable or chooses not to do so on their own. The Authorized Individual must certify that they rank highest in the following hierarchy and is willing and able to manage the Account:

  1. Power of Attorney
  2. Conservator or Legal Guardian
  3. Spouse
  4. Parent
  5. Sibling
  6. Grandparent
  7. SSA-appointed Representative Payee

An Eligible Individual living in any state, US territory or military base, may open an Account.

Tax considerations associated with opening and maintaining an Account vary among the states. For example, Louisiana taxpayers may earn a tax credit for contributions to an LA ABLE Account (refer to “What are the tax advantages of an ABLE Account?” above).

No. Each ABLE Account is specific to one Eligible Individual.

Yes, but only a transfer to another Eligible Individual who is also a Sibling of the Account Owner is permitted.

Yes. During his or her lifetime, an Account Owner may designate a Successor Account Owner, who must be both an Eligible Individual and a Sibling of the Account Owner.

If an Account Owner moves to another state, the Account still may remain in the LA ABLE Plan. Alternatively, the Account Owner can rollover the ABLE Account into another state’s ABLE plan. An Account Owner is encouraged to consult with a financial or other professional advisor regarding the specific rules governing a rollover of an Account to another plan.

LA ABLE offers nine Investment Options, including four Target Risk Portfolios that range from aggressive to conservative, four Individual Portfolios, and one Checking Account Option with an optional debit card provided by Fifth Third Bank, National Association. There is no limit on the number of Investment Options that can be selected in an Account.

For existing funds in your Account, you may change your selected Investment Options up to two times per year. You can change your Investment Options for future contributions to your Account at any time.