Michigan’s ABLE account program (“MiABLE”) has gone into effect. The program launched November 1, 2016.
MiABLE program accounts are modeled after 529 college savings accounts, and are meant to help persons with disabilities save money in their own names and allow tax advantaged distributions for certain expenses including housing, transportation, health and wellness, education and more, while maintaining eligibility for federal and state aid. Like 529 college savings accounts, if funds distributed from a MiABLE account are not used for qualifying expenses, any investment growth will be taxed at ordinary income tax rates, plus a 10% penalty. MiABLE account funds can be rolled over tax-free from one MiABLE account to another and the designated beneficiary can be changed from one disabled person in a family to another in the same family.
Some details for Michigan MiABLE accounts:
- Six investment portfolio options are available, from conservative to aggressive portfolios.
- Debit cards will become available to account holders in early 2017. This will make it easier for an account holder to access funds in their account.
- A major benefit to a MiABLE account holder is the ability to post their account online, like GoFundMe accounts, to make it easier for third parties (parents, grandparents, siblings, etc.) to donate directly to the account.
- MiABLE accounts will be charged an annual fee of $45.
More MiABLE account information, as well as online enrollment is available at www.miable.org.