Recently, the multi-state ABLE consortium (National ABLE Alliance) entered into a contractual agreement with Ascensus College Savings (ACS) to administer the ABLE savings plans offered by the National ABLE Alliance. The National ABLE Alliance is currently comprised of 13 states, covering roughly a quarter of the U.S. population. The partnership between states allows the National ABLE Alliance to offer its customers the lowest ABLE investment fees in the country.
Kansans may visit www.SaveWithABLE.com on January 26 to open an ABLE account through the Kansas ABLE Savings Plan. Initially Kansas ABLE plans will offer six investment options with a checking and debit card option available in spring of 2017.
Please continue to watch for updates or, request email updates here.
In April 2015 the Kansas legislature passed a bill authorizing the Kansas Achieving a Better Life Experience (ABLE) Savings Program, an initiative that will provide individuals living with disabilities a new way to save for their future. Federal law gives account owners the access to tax deferred savings growth, like a retirement account, and the ability to shelter the account from asset tests in Medicaid and Supplemental Security Income programs. We’re proud to have led the collective effort behind passing this legislation in Kansas and look forward to implementing this important effort on behalf of individuals with disabilities and their families. Follow these links to find out more about the federal statute and proposed rules.
With this first milestone behind us, we’ve continued efforts to see this initiative through to the finish line. In January we entered into a multi-state ABLE Consortium in the interest of cost savings to both future Kansas account owners and the state. Currently, the consortium includes Alaska, Illinois, Iowa, Kansas, Minnesota, Missouri, Nevada, New Jersey, Pennsylvania, and Rhode Island. The consortium of several states should provide better options and lower costs for account owners, versus the state developing our own program.
A Request for Proposals (“RFP”) for our ABLE program was issued June 8, 2016 and seeks a qualified financial services company to administer the following core ABLE components: 1) investment management, 2) administrative services, 3) customer service, and 4) outreach material support. The consortium is seeking proposals that model a traditional 529 plan design, a Health Savings Account (HSA) approach, or an alternative innovative approach. All proposals from potential bidders are due by 2 p.m. on August 1, 2016. A copy of the RFP can be accessed at http://ow.ly/yRaR301ggBf.
Currently, we hope to have the program up and running by end of this year. Check back here for updates as we continue this process or, request email updates here.
Ron Estes, Kansas State Treasurer