What Is a Florida ABLE Account?

The program is run by Florida ABLE, Inc., a nonprofit direct support organization established by the Florida Prepaid College Board. The board approves its articles, bylaws and annual budget, and its investment plan is subject to board approval.

Each account has a designated beneficiary, who is the eligible individual who established the account or to whom it was transferred. When the account is established, the designated beneficiary must be a resident of Florida or of a state that has contracted with Florida ABLE, Inc. Contributions above the federal limits are prohibited.

State law gives the account some protection. Money paid into or out of the program trust fund by or for a designated beneficiary is exempt from the claims of the beneficiary's creditors if the participation agreement has not been terminated, and it may not be pledged to secure a loan. The participation agreement is an obligation of the program only, not of the state or the board.

Rules apply at death. Unless federal law prohibits it, remaining funds are first distributed for qualified disability expenses and then transferred to the beneficiary's estate or to an ABLE account of another eligible individual. Except as required by federal law, the state Medicaid program may not file a claim for Medicaid recovery of funds in an ABLE account.

Benefits eligibility involves separate rules. One Medicaid planning concept is explained in the Florida Medicaid look back period.