Qualified Disability Expenses
What are Qualified Disability Expenses?
These are ANY expenses incurred as a result of living with a disability and are intended to improve your quality of life. The definition of a Qualified Disability Expense was intentionally left broad to encompass the wide variety of expenses individuals with disabilities may have.
Qualified Disability Expenses include, but are not limited to:
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Education
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Health and wellness
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Housing
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Food
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Transportation
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Legal fees
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Financial management
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Employment training and support
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Assistive technology
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Personal support services
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Oversight and monitoring
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Funeral and burial expenses
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Basic living expenses
The determination of what is a Qualified Disability Expense is the responsibility of the Account Owner or Authorized Individual. It is recommended Account Owners or Authorized Individuals retain receipts and statements of withdrawal transactions.
Ready to make a withdrawal?
Withdrawals can be requested online, via phone or by submitting a paper form. To request a withdrawal online, log in to your account and click Make a Withdrawal from the left menu. Follow the prompts until the withdrawal request is complete.
Easily track your withdrawals
At the time of withdrawal, you do not need to prove the withdrawal is for a Qualified Disability Expense. Annually, IAble will report the total amount of your withdrawals to the IRS and the date and amount of each withdrawal to the Social Security Administration. In the event either entity wants to verify the expenses, it's recommended you keep detailed records. IAble has created an optional Qualified Disability Expenses Withdrawal Log to assist in the tracking of disability-related expenses.
This log is an optional tool provided by the State of Iowa Treasurer's Office for the benefit of IAble Account Owners. This is not a required form and is not intended as tax advice. Do not send this form to IAble.
Qualified Disability Expenses Withdrawal Log
Non-Qualified Withdrawals
If you use your IAble account assets for non-qualified expenses, the earnings portion of the withdrawal will be treated as income; it will be federally taxed at your tax rate and will be subject to a 10% federal tax penalty. Any earnings on contributions are not subject to Iowa state income tax, which means your Account assets grow free of current Iowa income tax and are Iowa state tax-free if withdrawn. If you are not an Iowa taxpayer, consider any state tax or other benefits that may be available by investing in your home state’s ABLE program.
For more information about qualified expenses, please refer to our Plan Disclosure Booklet.
