Article

Families with an Invest529 account can transfer funds to an ABLEnow disability savings account without incurring any tax or penalty.

By transferring funds from an Invest529 account to ABLEnow, families have flexibility to use the funds at any time for a wide range of qualified disability expenses to help the individual with a disability maintain or improve their health, independence and quality of life. In addition, funds saved in an ABLE account won’t affect eligibility for most public disability benefits, including Medicaid and Supplemental Security Income (SSI).

Things to Consider

• The beneficiary of both accounts must be the same person, or the new beneficiary must be an ABLE-eligible “Member of the Family” (as defined by the IRC Code*).
• The beneficiary of the ABLEnow account will also be the owner of the ABLEnow account, even if they weren’t the owner of the Invest529 account.
• Unlike other rollovers, 529-to-ABLEnow transfers can be made more than once per year.
• The amount transferred from a 529 account to an ABLEnow account may not exceed the annual ABLE contribution limit ($20,000 in 2026) and includes any previous contributions amounts counting toward the annual contribution limit.

Moving your Funds

Transfers can be completed in two easy steps:

• Step 1: Open an ABLEnow account. If you already have an ABLEnow account, skip to Step 2.
• Step 2: Complete the ABLEnow Incoming Direct Rollover Form.

If 529 account is already closed and you’ve received the funds, you may still be able to deposit them into an ABLEnow account. Complete and submit the ABLEnow Incoming Indirect Rollover Form within 60 days of the withdrawal.

Contact ABLEnow Customer Service or Invest529 Customer Service for questions about transferring funds from Invest529 to ABLEnow. Consult your tax, financial or legal professional for more information about your specific situation and consequences of a transfer.

*Internal Revenue Service (IRS) rules permit a transfer to an ABLE-eligible “Member of the Family”  which includes the 529 designated beneficiary’s: son or daughter, or a descendant of either; stepson or stepdaughter; brother, sister, stepbrother, or stepsister; father or mother, or an ancestor of either; stepfather or stepmother; a son or daughter of brother or sister; a brother or sister of the designated beneficiary's father or mother; a son-in-law, daughter-in-law, father in-law, mother-in-law, brother-in-law, or sister-in-law; the spouse of the designated beneficiary or the spouse of any individual described above; or a first cousin of the designated beneficiary. For the purposes of this paragraph, a legally adopted child shall be treated as the child of such individual by blood. The terms “brother” and “sister” include half-brothers and half-sisters.