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

• Both accounts must have the same beneficiary, or the new beneficiary must be an ABLE-eligible “Member of the Family” as defined in Section 529 of the Internal Revenue Code*.  
• It’s important to remember that the beneficiary of the ABLEnow account will also be the owner of the ABLEnow account, even if you owned the Invest529 account.
• 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 Incoming Program-to-Program Transfer (529 to ABLEnow) request form and send it to Invest529.

If you previously closed your Invest529 account and received the funds, you may be eligible to deposit these funds into an ABLEnow account within 60 days of the withdrawal by completing the ABLEnow Incoming Rollover Form.

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” of the 529 account’s designated beneficiary which includes: a son or daughter, or a descendant of either; the 529 designated beneficiary's 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 529 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 529 designated beneficiary or the spouse of any individual described above; or a first cousin of the 529 designated beneficiary. For the purposes of this paragraph, a legally adopted child of the 529 designated beneficiary shall be treated as the child of such individual by blood. The terms “brother” and “sister” include half-brothers and half-sisters.