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Frequently asked questions

Scroll down to see answers to things we get asked a lot. If you're looking for something specific, enter or choose a keyword below.

What is considered to be a “qualifying expense”?
A "qualified disability expense" means any expense related to the beneficiary as a result of living a life with disabilities. These may include education, housing, transportation, employment training and support, assistive technology, personal support services, health care expenses, financial... Read more
Can I use ABLE funds to pay for a vacation?

Maybe. Qualified disability expenses may differ from beneficiary to beneficiary depending on their disability. A vacation could qualify as an eligible expense if it maintains or improves the health, independence, or quality of life of the person living with a disability.

What happens if I withdraw money for a non-eligible expense?
You’ll have to pay taxes on any non-eligible expense, plus a 10% penalty on the earnings portion of the withdrawal. A withdrawal used for a non-eligible expense, or for housing expenses even if they are qualified disability expenses, could affect your eligibility for Supplemental Security Income... Read more
Can I use funds to pay for housing or rent?
You can use money from an ABLE account for housing expenses. If you’re eligible for Supplemental Security Income (SSI), the money must be used within the month it was withdrawn so it doesn’t count as asset for the month in determining your SSI eligibility. Plus, having an ABLE account doesn’t... Read more
Can money in my ABLE account be recovered in a bankruptcy?

No. The ABLE account is protected from bankruptcy.

How do I prove an eligible expense?

We don’t need proof of your expenses, but you should have it for your records as the IRS may require you to provide proof of qualified disability expenses in the case of an audit.

Can I open and/or manage more than one Maryland ABLE account?

Yes, you can open and manage multiple accounts for beneficiaries if you are their Authorized Legal Representative. 

Remember that each beneficiary can have only one ABLE account open at a time. Each Maryland ABLE account can be connected to one or more bank accounts.

How do I manage bank accounts for multiple beneficiaries?

If you are managing ABLE accounts for more than one beneficiary, you can use the same banking information on multiple accounts. The bank account has to be added to each plan account individually.