Save money tax-deferred.
The earnings on your investments are federally tax-deferred and tax-free, if used for qualified disability expenses.¹ That can help your savings compound, earning returns on your returns.
Keep your needs-based benefits.
Colorado ABLE accounts are an addition to, not a replacement of, government programs and do not affect eligibility for any federal needs-based programs including Medicaid. There is a limitation for Supplemental Security Income (SSI) benefits explained below:
- Balances of $100,000 or less are excluded from your SSI resource limit.
- Only the amount OVER $100,000 is counted against your limit, along with assets held in non-ABLE accounts.
- If your account causes you to exceed the SSI resource limit, then your SSI benefits will be suspended until the account balance no longer exceeds your resource limit.
- You’ll continue to be eligible for Medicaid, regardless of your account balance.
Investment options that fit your needs.
Choose from among six different investment options, including four mutual fund based investments and one FDIC-insured investment
Friends & family can contribute to your account. Anytime.
Anyone can contribute directly to your account. No matter who contributes, you, the account owner or authorized individual, retain control over the account.
Contribute more with Earned Income.
ABLE account owners who earn income may contribute additional funds beyond the annual $15,000 contribution limit. The additional annual contribution amount is equal to the federal poverty level for a one-person household (in your state of residence) or the account owner’s gross wages, whichever is less. Working account owners are not eligible to contribute the additional funds if they are already contributing to:
- a defined contribution plan
- an annuity contract
- an eligible deferred compensation plan
Account Owners should keep adequate records to ensure the limit is not exceeded. Any increase in contributions could impact tax obligations, so consult a tax advisor before making any such increase. If you are eligible, fill out the Self Certification form.
Save up to $15,000/year.
No further contributions may be made until the start of the next calendar year. Account balance limit: $400,000.
Your annual contribution limit is: $15,000
If you work and earn income, you may be eligible for an increased annual contribution limit. Learn more about self-certifying.
Set up automatic contributions.
These are contributions of a specific amount made automatically into your account on a custom frequency basis. For example, you can set up recurring contributions of $25 per month. This makes the process of investing very simple.
Easily create an account in minutes.
Just tell us a little bit about yourself and select your investments. That’s it. You can easily access your account at any time, from a PC, tablet, or mobile device. Plus, you can get started with as little as $25.
Make withdrawals easily.
With the Colorado ABLE Plan, you can access your savings by:
- Going online
- Calling us
- Mailing a paper form
- Debit card or check, when you contribute to the Fifth Third Bank Checking Option
- Making systematic withdrawls. This is a way of making automatic withdrawals, such as when you’d like to use your account to make payments each month. You can make systematic withdrawals to the bank listed on your account, by mail to your address, or to a third party.
Pay for qualified expenses.
These are ANY expenses that are incurred as a result of living with a disability and are intended to improve your quality of life. Qualified expenses include, but are not limited to:
- Health and wellness
- Legal fees
- Financial management
- Employment training and support
- Assistive technology
- Personal support services
- Oversight and monitoring
- Funeral and burial expenses
When savings is used for non-qualified expenses:
The earnings portion of the withdrawal will be treated as income, so it will be taxed at your tax rate, and will be subject to a 10% federal tax penalty and applicable state taxes.
¹ Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as applicable state and local income taxes.