Update from the Texas ABLE℠ Program
Significant progress has been made on implementing the Texas Achieving a Better Life Experience (Texas ABLE℠) Program. The program manager is completing the marketing and enrollment/recordkeeping websites and developing program material. The Texas ABLE Program Advisory Committee continues to provide guidance for the administration of the program to the Texas Prepaid Higher Education Tuition Board.
We will notify you when Texas ABLE is open for enrollment. In the meantime, we wanted to update you on some recent changes to ABLE programs.
- The annual gift tax exclusion increased due to inflation, raising the annual contribution limit for ABLE accounts from $14,000 to $15,000 effective January 1, 2018.
- The federal Tax Cuts and Jobs Act signed by the President on December 22, 2017, introduced enhancements to ABLE programs. See Sections 11024 and 11025 of the Act for details. State ABLE programs are working to incorporate these changes into their programs.
For more information on Texas ABLE, contact us at TexasABLE@cpa.texas.gov or call 512-475-5331.
The Texas ABLE Program is made possible through the federal ABLE Act, which was signed into law in December 2014. The Texas Prepaid Higher Education Tuition Board, with assistance from the Texas Comptroller of Public Accounts, administers the program.
Other than FDIC insurance for the Bank Savings Account Option, accounts are not insured or guaranteed and could lose money (including the principal invested).
Before investing in the Program, investors should carefully consider the federal and state tax consequences, possible negative effects on eligibility for federal or state benefits, and possible Medicaid recapture, investment objectives, risks, administrative fees, service and other charges and expenses associated with the Program. The Program Disclosure Statement and Participation Agreement contains this and other information about the Program, and will be available once the program launches at www.TexasABLE.org or by calling 844-4TX-ABLE (844-489-2253). Investors should read the Program Disclosure Statement and Participation Agreement carefully before investing.
Comments or complaints may be forwarded to the following address or by calling the following number: Prepaid Higher Education Tuition Program, Office of the Comptroller of Public Accounts, P.O. Box 13407, Austin, Texas 78711-3407, 512-936-2064.