A person is eligible (an “Eligible Individual”) to open an Account if he or she meets the following four requirements:
- The person is a Texas resident.
- The person can establish that he or she has a disability through one of the following ways:
SSI or SSDI Eligibility – The Social Security Administration has determined that the person is eligible to receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), and he or she is still eligible to receive SSI or SSDI when he or she opens the account.
OR Physician’s Diagnosis – A licensed physician has provided a written diagnosis that the person is either:
a) blind (within the meaning of the Social Security Act),
or (b) has a medically determinable physical or mental impairment that results in marked and severe limitations, and which can either be expected to result in death, or has lasted or is expected to last at least 12 months.
(Note: individuals do not have to provide us with a copy of the diagnosis during enrollment, but a copy of the diagnosis must be available upon request)
OR Compassionate Allowances Conditions – The person has a condition listed on the Social Security Administration’s list of Compassionate Allowances Conditions.
The person’s disability was present before age 26.
The person must have no other active ABLE account in their name except for during a Rollover or Program-to-Program Transfer process.
The Designated Beneficiary is the person for whom the Account is established. The Designated Beneficiary is the owner of the Account. The Program will require that the Designated Beneficiary, or their Authorized Legal Representative if applicable, to certify, under penalty of perjury, that the Designated Beneficiary meets the requirements listed above.
The Designated Beneficiary also must agree to keep any documents supporting his or her eligibility (such as the Social Security Administration’s SSI or SSDI awards letter or a physician’s written diagnosis), and, if the Program requests copies of these documents, to provide them within 30 days. If a Designated Beneficiary does not provide requested documentation within 30 days, the Program may suspend or close the Account.
If you establish an Account as an Authorized Legal Representative on behalf of a Designated Beneficiary, you also must agree to keep any documents demonstrating your status as an Authorized Legal Representative for the Designated Beneficiary in the event the Program requests copies of these documents. A Social Security Representative Payee will not be permitted to open an Account on behalf of a Designated Beneficiary unless the Representative Payee otherwise meets the requirements of an Authorized Legal Representative (such as a power of attorney, legal guardian, or parent).
The Application requires you to provide the Program with certain information, including your eligibility to open an Account, the Investment Options in which you would like to invest contributions, your name, address, date of birth, Social Security Number, and any other information the Program requests to identify you. Until you provide the information needed, you will not be able to transact on the Account.
If the Designated Beneficiary ceases to be an Eligible Individual, beginning on the first day of the Designated Beneficiary’s first taxable year for which the Designated Beneficiary does not satisfy the definition of an Eligible Individual, additional contributions to the Account will not be accepted by the Program, provided the Program has notice of such ineligibility. It is the responsibility of the Designated Beneficiary or their Authorized Legal Representative, if applicable, to notify the Program of any change in eligibility. Additionally, during the time the Designated Beneficiary is not an Eligible Individual, none of the Designated Beneficiary’s expenses will be considered Qualified Disability Expenses. You should carefully read the Responsibility to Notify Program of Changes in Eligibility section and Summary of Federal and Texas Tax Considerations section of the Program Disclosure Statement for more information.