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MEDICAL SERVICES POLICY MANUAL, SECTION E

E 600 Achieving a Better Life Experience(ABLE) Program

9. Legal fees 10. Expenses for oversight and monitoring of the ABLE account 11. Funeral and burial expenses 12. Basic living expenses.

E-660 Income Exclusions MS Manual 01/01/24 Exclude all contributions to an ABLE account from the countable income of the designated beneficiary (See MS policy section E-630). This includes rollovers from another family member’s ABLE account.

NOTE: A rollover is the distribution of all or some of the funds from an initial ABLE account to the ABLE account of a member of the designated beneficiary’s family. For purposes of this type of rollover, a member of the designated beneficiary’s family means: siblings, stepsiblings, and half siblings.

However, do not deduct contributions from the countable income of the individual who makes the contribution.

EXAMPLE: Contribution: Kristie Mae has one hundred dollars ($100) automatically deducted from her paycheck and deposited into her daughter Sharon’s ABLE account. The one hundred dollars ($100) will not be considered income for Sharon but will still be included as a portion of Kristie Mae’s income.

EXAMPLE: Rollover: Linda is determined to no longer be disabled so she transfers all of the funds in her ABLE account to her stepbrother Scott’s ABLE account. These funds will not be considered as income to Scott.

The funds in an ABLE account can accrue interest, earn dividends, and otherwise appreciate in value. Earnings increase the account’s balance. Interest accrued or dividends earned on the money in an ABLE account are excluded from the income of the designated beneficiary.

NOTE: Long-Term Supportsand Services’ transfer of resources rules apply to contributions made to an ABLE account (See MS policy section H-300-325).