FAQs
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- About ABLE
- Account Management
- Additional Tax Benefits and Penalties
- ALR
- Banking and Investments
- Contributions and Withdrawals
- Eligibility
- Getting Started with ABLE
- Gifting
- Prepaid Card
- Recurring Contributions
- Rollover
- Successors and Estates
- Tax Credit
- Do I have to pay taxes on my account?
- No. If the money in your ABLE account is used to pay for qualified expenses, it won’t be counted as income for your state or federal taxes. The definition of a qualified expense for ABLE is broad, inclusive of anything that impacts the person with a disability’s health, independence and quality of... Read more
- Do I have to file separate taxes for each ABLE account?
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Each beneficiary account is treated separately. Every account is subject to a separate $19,000 annual contribution limit (or more if the beneficiary has earned wages for that year), and each ABLE account will receive separate tax documents.
- What is IRS Form 1099-QA?
- If you make a withdrawal from an Oregon ABLE account, you will receive an IRS Form 1099-QA, detailing all the withdrawals you made from your account throughout the tax year. If the money you withdrew from your account was used to pay for qualified expenses, the distributions are not taxable, and... Read more
- When is IRS Form 1099-QA available?
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The plan administrator must send the 1099-QA by January 31, so you should receive the form no later than early February following the close of the tax year. You will receive it via mail or electronic delivery based on communication preferences.
- What is IRS Form 5498-QA?
- If you make a contribution to your Oregon ABLE account, you will receive IRS Form 5498-QA, which is a tax form that details all of the contributions you made throughout the tax year to your account. This form reports ABLE account contributions, rollovers and direct program-to-program transfers in... Read more
- When is IRS Form 5498-QA available?
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The plan administrator must send the 5498-QA by March 15, so you should receive the form no later than the end of March following the close of the tax year. You will receive it via mail or electronic delivery based on communication preferences.
- What do I need to do with my IRS Form 5498-QA form?
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Keep this tax form with your records for future reference. You're not required to file it with your tax return.
- Are there other tax credits I may qualify for?
- Yes. Beyond the Oregon state income tax credit which you earn for contributing to an Oregon ABLE Savings Plan account, the IRS offers several tax credits that can provide meaningful savings for families, reducing the amount filers owe on their taxes, and in some cases, leading to an increased tax... Read more
- Are there tax penalties on withdrawals for non-qualified expenses?
- Yes. If you make a withdrawal from your account for a non-qualified expense, the earnings tied to that distribution will be considered taxable income. A withdrawal used for a non-qualified expense could affect your eligibility for benefits such as Supplemental Security Income (SSI) or... Read more
