CERTAIN RISKS TO CONSIDER. Opening an account involves certain risks. Among other things discussed in this Program Disclosure Statement, you should carefully consider the following risks before completing an Enrollment Form. You also should read this Program Disclosure Statement carefully before making a decision to open an account. Investment risks Each of the Investment Options is subject to certain risks that may affect performance. Except for the Bank Savings Investment Option and the Checking Investment Option, an account’s value may decline. As with any investment, there can be no assurance that the value of the account will grow at any particular rate. The value of the securities in which the Investment Options (other than the Bank Savings Investment Option and the Checking Investment Option) invest will change due to market fluctuations and a number of other factors, which will not be in the control of the Nebraska Investment Council, the Trustee or the Program Manager. If the value of these securities declines, you may lose some or all of the principal in the account. None of the State of Nebraska or its officials/employees, the Nebraska Investment Council, the Nebraska State Treasurer, the Nebraska State Investment Officer, First National Bank of Omaha or its authorized agents or their affiliates, or any other federal or state entity or person guarantees any minimum rate of return or any return on the account or that you will not lose some or all of the principal amount invested. For a description of the risks associated with the underlying investments of each of the Investment Options invests, see “Exhibit B.” No insurance or guarantees Except as described herein for accounts invested in the Bank Savings Investment Option and the Checking Investment Option, the account is not insured by the FDIC. In addition, the account is not guaranteed or insured by the State of Nebraska or its officials/employees, the Nebraska Investment Council, the Nebraska State Treasurer, the Nebraska State Investment Officer, First National Bank of Omaha or its authorized agents or their affiliates, or any other federal or state entity or person. Program risks Supplemental Security Income – Qualified ABLE program balances over $100,000 and certain distributions from an ABLE program account, such as the Enable Savings Plan, could affect the Account Owner’s eligibility for SSI. Medicaid eligibility – The ABLE Act is designed to ensure that the value of any and all assets purchased using funds from an ABLE account that are Qualified Disability Expenses will not count for purposes of determining eligibility for Medicaid, and that once an asset is purchased it will not be subject to further review. However, the Centers for Medicare & Medicaid Services (CMS) have not yet provided interpretative guidance similar to SSA’s regarding the potential impact of ABLE programs on Medicaid benefits. Please consult with your local Medicaid office for more information. State benefits – Qualified ABLE program balances and distributions from an ABLE program account, such as the Enable Savings Plan, could affect your eligibility for certain state benefits programs. Please consult your local benefits office or benefits advisor for more information. No longer an eligible individual – If you are no longer considered to be an Eligible Individual, expenses incurred at a time when you are not an Eligible Individual will not be considered Qualified Disability Expenses. The earnings portion of distributions from the account for expenses that are not considered Qualified Disability Expenses will be includable as ordinary income for tax purposes and an additional 10% federal tax unless an exception applies.
Appears in 2 contracts
Samples: Program Disclosure Statement and Participation Agreement, Program Disclosure Statement and Participation Agreement
CERTAIN RISKS TO CONSIDER. Opening an account involves certain risks. Among other things discussed in this Program Disclosure Statement, you should carefully consider the following risks before completing an Enrollment Form. You also should read this Program Disclosure Statement carefully before making a decision to open an account. Investment risks Each of the Investment Options is subject to certain risks that may affect performance. Except for the Bank Savings Investment Option and the Checking Investment Option, an An account’s value may decline. As with any investment, there can be no assurance that the value of the your account will grow at any particular raterate or that it will not decline. The value of the securities in which the Investment Options (other than the Bank Savings Investment Option and the Checking Investment Option) invest will change due to market fluctuations and a number of other factors, which will not be in the control of the Nebraska Investment Council, the Trustee or the Program Manager. If the value of these securities declines, you may lose some or all of the principal in the your account. None of the Nebraska State Treasurer, the Nebraska Investment Council, the Nebraska State Investment Officer, the State of Nebraska or its officials/employees, or the Nebraska Investment Council, the Nebraska State Treasurer, the Nebraska State Investment Officer, First National Bank of Omaha or its authorized agents or their affiliates, Program Manager or any other federal or state entity or person of its affiliates guarantees any minimum rate of return or any return on the your account or that you will not lose some or all of the principal amount invested. For a description of the risks associated with the underlying investments of each of the Investment Options invests, see “Exhibit B.” No insurance or guarantees Except as described herein for accounts invested in the Bank Savings Investment Option and the Checking Static Investment Option, the your account is not insured by the FDIC. In addition, the your account is not guaranteed or insured by the State of Nebraska or its officials/employeesNebraska, the Nebraska Investment Council, the Nebraska State Treasurer, the Nebraska State Investment Officer, First National Bank of Omaha or its authorized agents or their affiliates, or any other federal or state entity or person. Program Investment Options have certain risks Supplemental Security Income Each of the Investment Options is subject to certain risks that may affect performance. Set forth below is a list of the major risks applicable to the Investment Options. In addition, see the descriptions of each of the underlying investments in each of the Investment Options. For a description of the risks associated with the underlying investments of each Investment Option, see “Part 9 – Qualified ABLE program balances over $100,000 Individual Investment Options.” • Market risk. Securities prices change every business day, based on investor reactions to economic, political, market, industry and certain distributions from an ABLE program accountcorporate developments. At times, these price changes may be rapid and dramatic. Some factors may affect the market as a whole, while others affect particular industries, firms, or sizes or types of securities. Market risk primarily affects stocks, but also affects high-yield bonds and, to a lesser extent, higher quality bonds. • Interest rate risk. A rise in interest rates typically causes bond prices to fall. Bonds with longer maturities and higher credit quality tend to be more sensitive to changes in interest rates, as are mortgage-backed bonds. Short- and long-term interest rates do not necessarily move the same amount or in the same direction. Money market investments are also affected by interest rates, particularly short-term rates, but in the opposite way: when short-term interest rates fall, money market yields usually fall as well. Bonds that can be paid off before maturity, such as mortgage-backed securities, tend to be more volatile than other types of debt securities. • Foreign investment risk. Foreign stocks and bonds tend to be more volatile and may be less liquid than their U.S. counterparts. The reasons for such volatility can include greater political and social instability, lower market liquidity, higher costs, less stringent investor protections, and inferior information on issuer finances. In addition, the Enable dollar value of most foreign currencies changes daily. All of these risks tend to be higher in emerging markets than in developed markets. • Concentration risk. To the extent that an Investment Option is exposed to securities of a single country, region, industry, structure or size, its performance may be unduly affected by factors common to the type of securities involved. • Issuer risk. Changes in an issuer’s business prospects or financial condition, including those resulting from concerns over accounting or corporate governance practices, could significantly affect an Investment Option’s performance if the Investment Option has sufficient exposure to those securities. • Credit risk. The value or yield of a bond or money market security could fall if its credit backing deteriorates. In more extreme cases, default or the threat of default could cause a security to lose most or all of its value. Credit risks are higher in high-yield bonds. • Management risk. An Investment Option’s performance could suffer if the investment fund or funds in which it invests underperforms. • Index sampling risk. The chance that the securities selected for a fund, in the aggregate, will not provide investment performance matching that of the fund’s target index. • Investment style risk. The chance that returns from the types of stocks the Investment Option invests in (small, mid, or large capitalization stocks) will trail returns from the overall stock market. Historically, these stocks have performed quite differently from the overall market. • Call risk. The chance that during periods of falling interest rates, issuers of callable bonds may call (redeem) securities with higher coupon rates or interest rates before their maturity dates. The fund would then lose any price appreciation above the bond’s call price and would be forced to reinvest the unanticipated proceeds at lower interest rates, resulting in a decline in the funds income. • Extension risk. The chance that during periods of rising interest rates, certain debt securities will be paid off ............................................................................................................................................................................................................................. substantially more slowly than originally anticipated, and the value of those securities may fall. Extension risk is generally low for short-term bonds. • Prepayment risk. The chance that during periods of falling interest rates, homeowners will refinance their mortgages before their maturity dates, resulting in prepayment of mortgage-backed securities held by the fund. The fund would then lose any price appreciation above the mortgages principal and would be forced to reinvest the unanticipated proceeds at lower interest rates, resulting in a decline in the fund’s income. • ETF risks. Because ETF Shares are traded on an exchange, they are subject to additional risks. The ETF Shares made available through the Plan are listed for trading on NYSE Arca and can be bought and sold on the secondary market at market prices. Although it is expected that the market price of an ETF Share typically will approximate its net asset value (NAV), there may be times when the market price and the NAV vary significantly. Thus, the Plan may pay more or less than NAV when it buys ETF Shares on the secondary market, and may receive more or less than NAV when it sells those shares. Although the ETF Shares available through the Plan are listed for trading on the NYSE Arca, it is possible that an active trading market may not be maintained. Trading of ETF Shares on NYSE Arca may be halted if NYSE Arca officials deem such action appropriate, if the ETF Shares are delisted from NYSE Arca, or if the activation of market wide trading halts (which halt trading for a specific period of time when the price of a particular security or overall market prices decline by a specified percentage). Individual Investment Options and Bank Savings Static Investment Option are not as diversified as other Investment Options The Individual Investment Options are designed to invest in a single fund, or in the case of the Bank Savings Static Investment Option, an FDIC-insured savings account. Individual Investment Options, by design, are not as diverse as the Age-Based and most Static Investment Options, which are invested in a number of different investments. For the Individual Investment Options, account owners do not own shares of a single fund but, rather, own an interest in the Investment Options offered by the Plan. Performance differences for the Individual Investment Options and their underlying funds may result from differences in the timing of purchases and sales and fees charged. Performance for the Bank Savings Static Investment Option is based on the interest earned on the FDIC-insured Savings Account. Account owners may not deposit directly into the Savings Account at a Bank branch or otherwise. The performance of each of the Individual Investment Options may be more volatile than most Static Investment Options or Age-Based Investment Options. Part 11 of this Program Disclosure Statement describes performance in greater detail. Program risks • Possible changes to the NEST Advisor Plan – The Nebraska State Treasurer, Nebraska Investment Council and the Program Manager reserve the right to make changes to the NEST Advisor Plan at any time. These changes may include changes to the underlying investments in which the Plan invests and changes to the expenses the Plan imposes. If the underlying investments are changed, the fees and expenses of the replacement investments may be higher or lower and the replacement investments may achieve different performance results than the investments the Plan currently utilizes. • Limitation on investment selection – An account owner may only change the investment election for an account twice per calendar year or upon a change in Beneficiary. If an account owner has multiple accounts in the Plan for the same Beneficiary, or multiple accounts in the NEST Advisor Plan, the NEST Direct Plan, the TD Ameritrade 529 College Savings Plan, could affect or the Account OwnerState Farm 529 Savings Plan, the account owner may change the Investment Options in all accounts without tax consequences, so long as the changes to all of the accounts are made at the same time and no more frequently than twice per calendar year or upon a change of Beneficiary. • Illiquidity of account – Funds in your account will be subject to the terms and conditions of the Plan and the Participation Agreement. These provisions may limit your ability to withdraw funds or to transfer these funds. Under no circumstances may any interest in an account or the Plan be used as security for a loan. • Acceptance to an Eligible Educational Institution is not guaranteed – There is no guarantee that a Beneficiary will be admitted to, or permitted to continue to attend, any Eligible Educational Institution. If the Beneficiary does not attend an Eligible Educational Institution, withdrawals from your account may be subject to state and federal taxes and penalties. • Qualified Higher Education Expenses may exceed the balance in your account – Even if you make the maximum amount of contributions to your account, the balance may not be sufficient to cover the Beneficiary’s eligibility Qualified Higher Education Expenses. • Plan contributions do not create Nebraska residency – Contributions to the Plan do not create Nebraska residency status for SSI. Medicaid eligibility – The ABLE Act is designed to ensure that the value of any and all assets purchased using funds from an ABLE account that are Qualified Disability Expenses will not count you or a Beneficiary for purposes of determining the rate of tuition charged by a Nebraska Eligible Educational Institution. • Laws governing 529 qualified tuition programs may change – There is a risk that federal and state laws and regulations governing 529 plans could change in the future. The proposed federal Treasury regulations that have been ............................................................................................................................................................................................................................. issued under Code Section 529 provide guidance and requirements for the establishment and operation of the Trust but do not provide guidance on all aspects of the Trust. Final regulations or other administrative guidance or court decisions might be issued that could adversely impact the federal tax consequences or requirements with respect to the Trust or contributions to or withdrawals from your account. In addition, Code Section 529 or other federal law could be amended in a manner that materially changes the federal tax treatment of contributions to and withdrawals from your account. You should understand that changes in the law governing the federal and/or state tax consequences described in this Program Disclosure Statement might necessitate material changes to the Trust for the anticipated tax consequences to apply. Furthermore, the Trust has been established pursuant to Nebraska law, the guidelines and procedures adopted by the Nebraska State Treasurer, and applicable securities laws. Changes to any of those laws or regulations may also affect the operation and tax treatment of the Trust, as described in this Program Disclosure Statement. Impact on the Beneficiary’s ability to receive financial aid The eligibility of the Beneficiary for financial aid may depend upon the circumstances of the Beneficiary’s family at the time the Beneficiary enrolls in an Eligible Educational Institution, as well as on the policies of the governmental agencies, school or private organizations to which the Beneficiary and/or the Beneficiary’s family applies for financial assistance. Because saving for college will increase the financial resources available to the Beneficiary and the Beneficiary’s family, it most likely will have some effect on the Beneficiary’s eligibility. These policies vary at different institutions and can change over time. Therefore, no person or entity can say with certainty how the federal aid programs, or the school to which the Beneficiary applies, will treat your account. However, financial aid programs administered by agencies of the State of Nebraska will not take your account balance into consideration, except as may be otherwise provided by federal law. Medicaid and other federal and state benefits The effect of an account on eligibility for Medicaid or other state and federal benefits is uncertain. It is possible that an account will be viewed as a “countable resource” in determining an individual’s financial eligibility for Medicaid, . Withdrawals from an account during certain periods also may have the effect of delaying the disbursement of Medicaid payments. You should consult a qualified advisor to determine how an account may affect eligibility for Medicaid or other state and that once an asset is purchased it will not be subject to further review. However, the Centers for Medicare & Medicaid Services (CMS) have not yet provided interpretative guidance similar to SSA’s regarding the potential impact of ABLE programs on Medicaid federal benefits. Please consult with your local Medicaid office for more information. State benefits – Qualified ABLE program balances and distributions from an ABLE program account, such as the Enable Savings Plan, could affect your eligibility for certain state benefits programs. Please consult your local benefits office or benefits advisor for more information. No longer an eligible individual – If you are no longer considered to be an Eligible Individual, expenses incurred at a time when you are not an Eligible Individual will not be considered Qualified Disability Expenses. The earnings portion of distributions from the account for expenses that are not considered Qualified Disability Expenses will be includable as ordinary income for tax purposes and an additional 10% federal tax unless an exception applies..............................................................................................................................................................................................................................
Appears in 1 contract
Samples: www.raymondjames.com
CERTAIN RISKS TO CONSIDER. Opening an account involves certain risks. Among other things discussed in this Program Disclosure Statement, you should carefully consider the following risks before completing an Enrollment Form. You also should read this Program Disclosure Statement carefully before making a decision to open an account. Investment risks Each of the Investment Options is subject to certain risks that may affect performance. Except for the Bank Savings Investment Option and the Checking Investment Option, an account’s value may declinedecline when its Investment Option declines in value. As with any investment, there can be no assurance that the value of the account will grow at any particular rate. The value of the securities in which the Investment Options (other than the Bank Savings Investment Option and the Checking Investment Option) invest will change due to market fluctuations and a number of other factors, which will not be in the control of the Nebraska Investment Council, the Trustee or the Program Manager. If the value of these securities declines, you may lose some or all of the principal in the account. None of the State of Alabama, the State of Nebraska or its their officials/employees, the Nebraska Investment Council, the Alabama State Treasurer, the Nebraska State Treasurer, the Nebraska State Investment Officer, First National Bank of Omaha or its authorized agents or their affiliates, or any other federal or state entity or person guarantees any minimum rate of return or any return on the account or that you will not lose some or all of the principal amount invested. For a description of the risks associated with the underlying investments of each of the Investment Options invests, see “Exhibit B.” No insurance or guarantees Except as described herein for accounts invested in the Bank Savings Investment Option and the Checking Investment Option, the account is not insured by the FDIC. In addition, the account is not guaranteed or insured by the State of Alabama, the State of Nebraska or its officials/their officials/ employees, the Nebraska Investment Council, the Alabama State Treasurer, the Nebraska State Treasurer, the Nebraska State Investment Officer, First National Bank of Omaha or its authorized agents or their affiliates, or any other federal or state entity or person. Program risks Supplemental Security Income – Qualified ABLE program balances over $100,000 and certain distributions from an ABLE program account, such as the Enable Savings PlanAlabama, could affect the Account Owner’s eligibility for SSI. Medicaid eligibility – The ABLE Act is designed to ensure that the value of any and all assets purchased using funds from an ABLE account that are Qualified Disability Expenses will not count for purposes of determining eligibility for Medicaid, and that once an asset is purchased it will not be subject to further review. However, the Centers for Medicare & Medicaid Services (CMS) have not yet provided interpretative guidance similar to SSA’s regarding the potential impact of ABLE programs on Medicaid benefits. Please consult with your local Medicaid office for more information. State benefits – Qualified ABLE program balances and distributions from an ABLE program account, such as the Enable Savings PlanAlabama, could affect your eligibility for certain state benefits programs. Please consult your local benefits office or benefits advisor for more information. No longer an eligible individual – If you are no longer considered to be an Eligible Individual, expenses incurred at a time when you are not an Eligible Individual will not be considered Qualified Disability Expenses. The earnings portion of distributions from the account for expenses that are not considered Qualified Disability Expenses will be includable as ordinary income for tax purposes and an additional 10% federal tax unless an exception applies.
Appears in 1 contract
Samples: Program Disclosure Statement and Participation Agreement
CERTAIN RISKS TO CONSIDER. Opening an account involves certain risks. Among other things discussed in this Program Disclosure Statement, you should carefully consider the following risks before completing an Enrollment Form. You also should read this Program Disclosure Statement carefully before making a decision to open an account. Investment risks Each of the Investment Options is subject to certain risks that may affect performance. Except for the Bank Savings Investment Option and the Checking Investment Option, an account’s value may decline. As with any investment, there can be no assurance that the value of the account will grow at any particular rate. The value of the securities in which the Investment Options (other than the Bank Savings Investment Option and the Checking Investment Option) invest will change due to market fluctuations and a number of other factors, which will not be in the control of the Nebraska Investment Council, the Trustee or the Program Manager. If the value of these securities declines, you may lose some or all of the principal in the account. None of the State of Alabama, the State of Nebraska or its their officials/employees, the Nebraska Investment Council, the Alabama State Treasurer, the Nebraska State Treasurer, the Nebraska State Investment Officer, First National Bank of Omaha or its authorized agents or their affiliates, or any other federal or state entity or person guarantees any minimum rate of return or any return on the account or that you will not lose some or all of the principal amount invested. For a description of the risks associated with the underlying investments of each of the Investment Options invests, see “Exhibit B.” No insurance or guarantees Except as described herein for accounts invested in the Bank Savings Investment Option and the Checking Investment Option, the account is not insured by the FDIC. In addition, the account is not guaranteed or insured by the State of Alabama, the State of Nebraska or its officials/their officials/ employees, the Nebraska Investment Council, the Alabama State Treasurer, the Nebraska State Treasurer, the Nebraska State Investment Officer, First National Bank of Omaha or its authorized agents or their affiliates, or any other federal or state entity or person. Program risks Supplemental Security Income – Qualified ABLE program balances over $100,000 and certain distributions from an ABLE program account, such as the Enable Savings PlanAlabama, could affect the Account Owner’s eligibility for SSI. Medicaid eligibility – The ABLE Act is designed to ensure that the value of any and all assets purchased using funds from an ABLE account that are Qualified Disability Expenses will not count for purposes of determining eligibility for Medicaid, and that once an asset is purchased it will not be subject to further review. However, the Centers for Medicare & Medicaid Services (CMS) have not yet provided interpretative guidance similar to SSA’s regarding the potential impact of ABLE programs on Medicaid benefits. Please consult with your local Medicaid office for more information. State benefits – Qualified ABLE program balances and distributions from an ABLE program account, such as the Enable Savings PlanAlabama, could affect your eligibility for certain state benefits programs. Please consult your local benefits office or benefits advisor for more information. No longer an eligible individual – If you are no longer considered to be an Eligible Individual, expenses incurred at a time when you are not an Eligible Individual will not be considered Qualified Disability Expenses. The earnings portion of distributions from the account for expenses that are not considered Qualified Disability Expenses will be includable as ordinary income for tax purposes and an additional 10% federal tax unless an exception applies.
Appears in 1 contract
Samples: Program Disclosure Statement and Participation Agreement
CERTAIN RISKS TO CONSIDER. Opening an account involves certain risks. Among other things discussed in this Program Disclosure Statement, you should carefully consider the following risks before completing an Enrollment Form. You also should read this Program Disclosure Statement carefully before making a decision to open an account. Investment Plan risks Each The value of the Investment Options is subject to certain risks that your account may affect performance. Except for the Bank Savings Investment Option and the Checking Investment Option, an account’s value may decline. decline As with any investmentmany investment programs, there can be no assurance that the value of the your account will grow at any particular raterate or that it will not decline. The value of the securities in which the Investment Options (other than the Bank Savings Investment Option and the Checking Investment Option) invest will change due to market fluctuations and a number of other factors, most of which will not be in the control of the Nebraska Investment Council, the Trustee Trust or the Program Manager. If the value of these securities declines, you may lose some or all of the principal balance in the your account. None of the State of Nebraska or its officials/employees, the Nebraska Investment Council, the Nebraska State Treasurer, the Nebraska State Investment Officer, First National Bank of Omaha or its authorized agents or their affiliates, or any other federal or state entity or person guarantees any minimum rate of return or any return on the account or that you will not lose some or all of the principal amount invested. For a description of the risks associated with the underlying investments of each of the Investment Options invests, see “Exhibit B.” No insurance or guarantees Except as described herein for accounts invested in the Bank Savings Investment Option and the Checking Investment Option, the Your account is not insured by the FDIC. In addition, the or guaranteed Balances in your account is are not guaranteed or insured by the State of Nebraska or its officials/employeesany instrumentality of the State of Nebraska, the Nebraska Investment CouncilTrust, the Nebraska State Treasurer, the Nebraska State Investment OfficerCouncil, First National Bank of Omaha the Program Manager or its authorized agents affiliates, the FDIC or their affiliatesany other party. You could lose money (including amounts contributed to your account), or not make money, if you participate in the Plan. Not a direct investment in mutual funds and Underlying Investment risks Although money contributed to accounts will be invested in Investment Options that hold mutual funds (among other types of investments), none of the Trust, the Plan, or any of the Plan’s Investment Options is a mutual fund, and an investment in the Plan is not an investment in shares of any mutual fund. When you invest money in an Investment Option, you will receive Investment Option units. Your money will be used to purchase shares of Underlying Investments. The settlement date for the Investment Option’s purchase of shares of an Underlying Investment typically will be one to three business days after the trade date for your purchase of Investment Option units. Depending on the amount of cash flow into or out of the Investment Option and whether the Underlying Investment is going up or down in value, this timing difference will likely cause the Investment Option’s performance either to trail or exceed the Underlying Investment’s performance. An investment in the Plan is an investment in municipal fund securities that are issued and offered by the Trust. These securities are not registered with the SEC or any state, nor are the Trust, the Plan, or the Investment Options registered as investment companies with the SEC or any state. The Investment Options invest in Underlying Investments so the Investment Option’s investment performance and risks are directly related to the performance and risks of the Underlying Investments. The accounts will indirectly bear the expenses charged by the Underlying Investments. Laws governing 529 qualified tuition programs may change There is a risk that federal and state laws and regulations governing 529 qualified tuition programs could change in the future. The proposed Treasury regulations that have been issued under Code Section 529 provide guidance and requirements for the establishment and operation of the Plan but do not provide guidance on all aspects of the Plan. Final regulations or other administrative guidance or court decisions might be issued that could adversely impact the federal tax consequences or requirements with respect to the Plan or contributions to or withdrawals from your account. In addition, Code Section 529 or other federal law could be amended in a manner that materially changes the federal tax treatment of contributions to and withdrawals from your account. You should understand that changes in the law governing the federal and/or state tax consequences described in this Program Disclosure Statement might necessitate material changes to the Trust and the Plan for the anticipated tax consequences to apply. No representation is made nor assurance given that any such changes may or state entity will be made or personthat such changes can be made in a manner to allow an account owner or Beneficiary to utilize those changes. Program risks Supplemental Security Income – Further, the Plan has been established pursuant to Nebraska law, the Code, and applicable securities laws. Changes to any of those laws or regulations may also affect the operation and tax treatment of the Plan. Limitation on Investment Option changes An account owner may only change the Investment Options for an account twice per calendar year, or upon a change in Beneficiary. If an account owner has accounts in the Plan and in any other 529 qualified tuition program in the Trust for the same Beneficiary, the account owner may change the Investment Options in all such accounts without adverse tax consequences, so long as the changes to all of the accounts are made prior to closing on the same trading day and no more frequently than twice per calendar year or upon a change of Beneficiary. Limited use of withdrawals without penalties Other than payment of a Beneficiary’s Federal Qualified ABLE program balances over $100,000 and certain distributions Higher Education Expenses, the circumstances under which a withdrawal may be made from an ABLE program accountaccount without a penalty or adverse tax consequences are limited. See “Part 15 – Federal and State Tax Considerations.” Limited operating history of Investment Options The Plan’s Investment Options have a limited operating history. Although the Underlying Investments have longer operating histories, such past performance of an Investment Option’s Underlying Investment(s) should not be viewed as a future prediction of that Investment Option’s or its Underlying Investment’s future performance. Fee changes The Plan’s fees and expenses and the Enable Savings Plan, could affect the Account Owner’s eligibility for SSIUnderlying Investments’ fees and expenses may change from time to time. Medicaid eligibility – The ABLE Act There is designed to ensure no assurance that the value of any these fees and all assets purchased using funds from an ABLE account that are Qualified Disability Expenses expenses will not count for purposes of determining eligibility for Medicaid, and that once an asset is purchased it will not be subject to further review. However, increase in the Centers for Medicare & Medicaid Services (CMS) have not yet provided interpretative guidance similar to SSA’s regarding the potential impact of ABLE programs on Medicaid benefits. Please consult with your local Medicaid office for more information. State benefits – Qualified ABLE program balances and distributions from an ABLE program account, such as the Enable Savings Plan, could affect your eligibility for certain state benefits programs. Please consult your local benefits office or benefits advisor for more information. No longer an eligible individual – If you are no longer considered to be an Eligible Individual, expenses incurred at a time when you are not an Eligible Individual will not be considered Qualified Disability Expenses. The earnings portion of distributions from the account for expenses that are not considered Qualified Disability Expenses will be includable as ordinary income for tax purposes and an additional 10% federal tax unless an exception appliesfuture.
Appears in 1 contract
Samples: bloomwell529.com
