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In observance of the Christmas Day federal holiday, the New York Stock Exchange and Capital Group’s U.S. offices will close early on Tuesday, December 24 and will be closed on Wednesday, December 25. On December 24, the New York Stock Exchange (NYSE) will close at 1 p.m. (ET) and our service centers will close at 2 p.m. (ET)

ABLEAmerica® distributions

Discover your options and get the information you need to process distributions from an ABLEAmerica account.

submit documents

One-time distributions

Distributions can be requested by phone unless a signature guarantee is required. In these cases, complete the ABLEAmerica Distribution Request.

Expedited delivery options are available for an additional charge and can be requested by phone.

A signature guarantee is required if the:

Address on file has changed within the last 10 calendar days and a check is being mailed to the address of record
Distribution is for more than $250,000
Automated Clearing House is to a bank account that has not been linked for distributions for at least 10 calendar days

If any of the following apply, contact us to discuss the requirements, as they can vary depending on the situation:

Check is payable to someone other than the account owner
Check is mailed somewhere other than the address of record
Distribution is to a new bank account

Yes, contact us to discuss the requirements.

The receiving custodian/trustee’s transfer or rollover request can be submitted if it’s signed by the account owner or authorized representative and the accepting financial institution. A signature guarantee may be required.

Since account owners are allowed to maintain only one ABLE account nationwide, the owner must close their previous ABLE account after they have rolled over its assets to the new ABLE account.

Alternatively, complete the ABLEAmerica Distribution Request. A signature guarantee is required.

When moving the assets, the ABLEAmerica account owner must be the same account owner or one of the following:

Sister
Stepsister
Half sister
Brother
Stepbrother
Half brother

Rollovers must be completed within 60 days of the initial distribution to retain the tax-free treatment of the rollover. Consult a tax advisor regarding the tax consequences of any transfer or rollover.

Note: Rollovers between ABLEAmerica accounts for the same account owner are limited to one every 12-month period.

Automatic distributions

Generally, an automatic distribution plan can be added to an ABLEAmerica account unless there is an active automatic investment plan. Contact us to discuss the requirements for adding the plan to the account.

The minimum distribution amount per transaction is $50 per fund.

The distribution will occur on the business day before the weekend or holiday unless that day falls in the previous month. In that case, the distribution will occur on the business day following the weekend or holiday.

Yes, you may skip the distribution for any month, up to one year. Contact us to make changes to your client’s automatic distribution plan.

Common questions

Qualified expenses are expenses incurred by an account owner that relate to maintaining or improving their health, independence or quality of life.

Generally, these expenses include, but are not limited to:

Education
Housing
Transportation
Employment training and support
Assistive technology and personal support services
Health
Prevention and wellness
Financial management and administrative services
Legal fees
Expenses for oversight and monitoring
Funeral and burial expenses
Other expenses the Internal Revenue Service (IRS) identifies

The ABLEAmerica authorized representative or account owner is responsible for confirming an expense is considered qualified. For more information about expenses the IRS considers to be qualified, review IRS Publication 907, Tax Highlights for Persons With Disabilities.

If distributions are used for purposes other than qualified disability expenses, the earnings will be subject to a 10% federal tax penalty in addition to federal and, if applicable, state income tax.

Yes, Form 1099-QA is issued the year following the distribution. For additional information about how distributions from an ABLEAmerica account can affect your client’s taxes, visit ABLEAmerica tax information.

Return to ABLEAmerica >

Contact us

Have questions or need additional support?
Contact us 8:00 a.m. to 7:00 p.m. ET, Monday through Friday.

(800) 421-0180

For financial professionals only. Not for use with the public.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Use of this website is intended for U.S. residents only.

The guidelines and procedures provided in the Account Resource Center may not apply to networked accounts or accounts not directly held by American Funds. The guidelines and procedures provided also apply only to those retirement accounts or Coverdell ESAs invested in American Funds with Capital Bank and Trust Company (CB&T) as custodian. The guidelines and procedures provided in the Account Resource Center do not apply to plans held in our retirement plan solutions — PlanPremier, PlanPremier-TPA or RecordkeeperDirect. Information on the Account Resource Center may change periodically, and previously printed information may not be current. Please refer to capitalgroup.com for the most current information available.

Financial professionals should always contact their back office to determine if there are any restrictions on the use of American Funds products, tools, services, websites and literature.

ABLEAmerica is distributed by Capital Client Group, Inc., and sold through unaffiliated intermediaries.

Depending on your state of residence, there may be an in-state plan that provides state tax and other state benefits not available through ABLEAmerica. Before investing in any state’s 529 plan, investors should consult a tax advisor.

This material does not constitute legal or tax advice. Investors should consult with their legal or tax advisors.

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ABLEAmerica® distributions

One-time distributions

Automatic distributions

Common questions

Return to ABLEAmerica >

Contact us

Have questions or need additional support?
Contact us 8:00 a.m. to 7:00 p.m. ET, Monday through Friday.

(800) 421-0180

Investments

RESOURCES & RESEARCH

PORTFOLIO SOLUTIONS

MORE OFFERINGS

OUR APPROACH

Insights

Capital Ideas Pro™: Access to special events, courses and consulting to help you grow.

CATEGORIES

FEATURED

LEARNING CENTER

Tools & Resources

CLIENT ACCOUNT SUPPORT

INVESTMENT TOOLS

RETIREMENT PLANS

About Us

ABLEAmerica® distributions

One-time distributions

What options are available for processing a distribution from an ABLEAmerica account?

How can I expedite my client’s distribution check?

When is a signature guarantee required for an ABLEAmerica distribution?

Can a distribution be deposited into the account owner’s bank account?

How can my client transfer or roll over their assets to an external ABLE account?

Automatic distributions

What are the eligibility requirements for automatic distributions?

What is the minimum amount for an automatic distribution?

What if an automatic distribution falls on a weekend or holiday?

Can I pause automatic distributions temporarily?

Common questions

What expenses are considered qualified?

Are distributions considered a tax-reportable event?

Return to ABLEAmerica >

Contact us

Have questions or need additional support? Contact us 8:00 a.m. to 7:00 p.m. ET, Monday through Friday.

(800) 421-0180

Capital Ideas Pro™:Access to special events, courses and consulting to help you grow.

Have questions or need additional support?
Contact us 8:00 a.m. to 7:00 p.m. ET, Monday through Friday.