Frequently Asked Questions
Questions about how the money in the ABLE account can be spent.
A Qualified Disability Expense (QDE) is any expense related to the Account Owner’s disability that helps maintain or improve their health, independence, or quality of life. QDEs are interpreted broadly.
Qualified expenses include education, housing, transportation, employment training and support, assistive technology, personal support services, health care, prevention and wellness, financial management, legal fees, funeral and burial costs, and basic living expenses.
You can request a withdrawal online or by submitting a withdrawal form. Funds can be sent to the Account Owner, the Authorized Individual, or paid directly to a provider.
Yes. You should keep receipts and records documenting that each withdrawal was used for a qualified disability expense, in case the IRS or the program requests verification.
If a withdrawal is not used for a qualified disability expense, the earnings portion is subject to federal income tax plus an additional 10% tax. A non-qualified withdrawal may also count toward resource limits and affect eligibility for means-tested benefits.