# Education (GED)

## Title 18. Student Financial Assistance

### Subtitle 19C. Maryland Able Program

#### Section 18-19C-01

(a) In this subtitle the following words have the meanings indicated.

(b) "ABLE account" means an account described under Sec. 529A(e) of the Internal Revenue Code.

(c) "ABLE account contributor" means an individual who contributes money to an ABLE account described under Sec. 529A(e) of the Internal Revenue Code.

(d) "ABLE account holder" means an individual who is the designated beneficiary of an account described under Sec. 529A(e) of the Internal Revenue Code.

(e) "Designated beneficiary" means an individual described in Sec. 529A(e) of the Internal Revenue Code.

(f) "Eligible individual" means an individual described in Sec. 529A(e) of the Internal Revenue Code.

(g) "Maryland ABLE Program" means a qualified ABLE program described in Sec. 529A(b) of the Internal Revenue Code.

(h) "Qualified disability expenses" means expenses described in Sec. 529A(e) of the Internal Revenue Code.

#### Section 18-19C-02

(a)

  (1) The State Treasurer shall establish a Maryland ABLE Program that shall be subject to the provisions of Sec. 529A of the Internal Revenue Code.

  (2) It is the goal of the State that the Maryland ABLE Program be fully operational by October 1, 2017.

(b) The purpose of the Maryland ABLE Program is to:

  (1) Encourage and assist individuals and families in saving private funds to support individuals with disabilities to maintain health, independence, and quality of life; and

  (2) Provide secure funding for disability-related expenses on behalf of designated beneficiaries with disabilities that will supplement, not supplant, benefits provided through private insurance, the Medicaid program under Title XIX of the Social Security Act, the Supplemental Security Income program under Title XVI of the Social Security Act, the beneficiary's employment, and any other source.

(c)

  (1) The State Treasurer shall administer, manage, and promote the Maryland ABLE Program.

  (2) The State Treasurer shall administer the Maryland ABLE Program in compliance with Internal Revenue Service standards for qualified ABLE programs.

  (3) The State Treasurer shall work in consultation with the Department of Disabilities to administer, manage, and promote the Maryland ABLE Program.

  (4) The State Treasurer may collaborate and participate with other states or entities to administer, manage, and promote the Maryland ABLE Program, including participating with a consortium of states that are implementing ABLE programs in those states or as a consortium of states.

(d) The State Treasurer shall adopt procedures relating to:

  (1) Enrollment for participation in the Maryland ABLE Program and any other procedures that the State Treasurer considers necessary to carry out the provisions of this subtitle; and

  (2) The establishment and operation of an ABLE account by a person other than a designated beneficiary as described in Sec. 18-19C-04 of this subtitle.

(e) At least annually, the State Treasurer shall issue to each ABLE account holder a statement that provides a separate accounting for each designated beneficiary providing the following information with respect to each account:

  (1) The beginning balance;

  (2) Contributions to the account;

  (3) Distributions from the account during the previous year; and

  (4) Ending ABLE account value.

#### Section 18-19C-03

(a)

  (1)

    (i) The State Treasurer may issue requests for proposals to evaluate and determine the means for the administration, management, promotion, or marketing of the Maryland ABLE Program.

    (ii) The State Treasurer shall consider proposals that meet the following criteria:

      (1) Ability to develop and administer an investment program of a nature similar to the objectives of the Maryland ABLE Program;

      (2) Ability to administer financial programs with individual account records and reporting; and

      (3) Ability to market the Maryland ABLE Program to eligible individuals.

  (2)

    (i)

      (1) Subject to subsubparagraph 2 of this subparagraph, the State Treasurer shall develop written informational materials about the Maryland ABLE Program.

      (2) The written materials developed under this subparagraph shall be in a form that enables the materials to be distributed electronically or by hand.

    (ii) The State Treasurer shall provide the materials developed under subparagraph (i) of this paragraph to the State Board and county boards for distribution to parents during individualized education program, individualized family service plan, and 504 plan meetings in accordance with Sec.Sec. 8-405(b)(2) and 8-405.1 of this article.

(b)

  (1) The State Treasurer may require an initial enrollment fee to be used for administrative costs of the Maryland ABLE Program.

  (2) The State Treasurer may require additional reasonable fees associated with the expenses of the Maryland ABLE Program.

(c)

  (1) The Maryland ABLE Program is subject to the provisions of Sec. 529A of the Internal Revenue Code.

  (2) The Maryland ABLE Program shall include provisions for automatic contributions.

  (3) Money and assets in the accounts established under the Maryland ABLE Program or an ABLE program in any other state may not be considered for the purpose of determining eligibility to receive, or the amount of, any assistance or benefits from local or State means-tested programs.

  (4) Money and assets contributed in each calendar year to the account of each ABLE account holder may not exceed the amount specified in Sec. 529A(b)(2) of the Internal Revenue Code for each calendar year in which the taxable year begins.

  (5) Contributions to the account of each ABLE account holder may not exceed the maximum amount determined by the State Treasurer to be in accordance with Sec. 529A(b)(6) of the Internal Revenue Code.

(d) The Maryland ABLE Program may receive money from:

  (1) Appropriations in the State budget;

  (2) Reasonable fees assessed to beneficiaries;

  (3) Grants or other assistance from federal, State, or local government; and

  (4) Any other money from any public or private source.

(e)

  (1) The Maryland ABLE Program:

    (i) May be established as one or more separate plans as determined by the State Treasurer;

    (ii) Shall be established in the form determined by the State Treasurer;

    (iii) Shall be marketed and promoted under the name or names determined by the State Treasurer; and

    (iv) May be established as one or more trusts to be declared by the State Treasurer.

  (2) The Maryland ABLE Program may be divided into multiple investment options.

#### Section 18-19C-04

(a)

  (1) An eligible individual may participate in and benefit from the Maryland ABLE Program.

  (2) An ABLE account may be established only for an eligible individual by:

    (i) The eligible individual;

    (ii) A person selected by the eligible individual; or

    (iii) Subject to paragraph (3) of this subsection and except as provided in paragraph (4) of this subsection, if an eligible individual, whether a minor or an adult, is unable to establish an ABLE account:

      (1) The eligible individual's agent under a power of attorney; or

      (2) If the eligible individual does not have a power of attorney, in the following order, the eligible individual's:

      (A) Conservator or legal guardian;

      (B) Spouse;

      (C) Parent;

      (D) Sibling;

      (E) Grandparent; or

      (F) Representative payee appointed for the eligible individual by the Social Security Administration.

  (3) The Board may accept a certification made under the penalties of perjury from the person seeking to establish an ABLE account that indicates:

    (i) The basis of the person's authority to establish the ABLE account; and

    (ii) There is no other person with a higher priority to establish the ABLE account under paragraph (2)(iii) of this subsection.

  (4) The following individuals may not establish an ABLE account on behalf of an eligible individual:

    (i) A minor;

    (ii) An individual against whom the eligible individual has obtained a peace or protective order;

    (iii) An individual who has been held civilly or criminally liable for financial exploitation under Title 13, Subtitle 6 of the Estates and Trusts Article; or

    (iv) An individual who is the subject of a civil or criminal order prohibiting contact with the eligible individual.

(b) Subject to the provisions of Sec. 529A of the Internal Revenue Code, distributions shall be requested by the designated beneficiary or the person authorized to establish the ABLE account under subsection (a) of this section.

(c) The Board may adopt regulations to carry out this section.

#### Section 18-19C-05

(a)

  (1) The debts, contracts, and obligations of the Maryland ABLE Program are not the contracts, debts, or obligations of the State, and neither the faith and credit nor taxing power of the State is pledged directly or indirectly or contingently, morally or otherwise, to the payment of the debts, contracts, and obligations.

  (2) The State Treasurer may not directly or indirectly or contingently obligate, morally or otherwise, the State to levy or pledge any form of taxation whatsoever for the debts and obligations of the Maryland ABLE Program or to make any appropriation for the payment of the debts and obligations of the Maryland ABLE Program.

(b) The State may not be liable for any losses or shortage of funds in the event that the designated beneficiary's ABLE account balance is insufficient to meet the designated beneficiary's qualified disability expenses.

(c) Money of the Maryland ABLE Program may not be considered money of the State or deposited in the State Treasury.

(d) Money of the Maryland ABLE Program may not be considered money of or commingled with the Maryland Senator Edward J. Kasemeyer Prepaid College Trust.

(e) Money of the Maryland ABLE Program may not be considered money of or commingled with the Maryland Senator Edward J. Kasemeyer College Investment Plan.

(f) Money of the Maryland ABLE Program may not be considered money of or commingled with the Maryland Broker-Dealer College Investment Plan.

#### Section 18-19C-06

(a) The Maryland 529 Program, the Maryland ABLE Program, and the ABLE accounts issued under this subtitle are not subject to the provisions of the Insurance Article.

(b) The assets and income of the Maryland ABLE Program are exempt from State and local taxation.

#### Section 18-19C-07

(a) In this section, "person" does not include the State.

(b) A person may not attach, execute, garnish, or otherwise seize any current or future benefit under an ABLE account or any asset of the Maryland ABLE Program.

#### Section 18-19C-08

(a) The Legislative Auditor shall audit the Maryland ABLE Program as provided under Title 2, Subtitle 12 of the State Government Article.

(b) The State Treasurer shall obtain an annual audit report from a service provider within 6 months of the end of the reporting period of the service provider.

#### Section 18-19C-09

(a) The State Treasurer shall issue refunds as specified in this section.

(b) If the contribution of an ABLE account contributor under the Maryland ABLE Program would result in aggregate contributions from all contributors to the ABLE account for the taxable year exceeding the amount specified in Sec. 529A(b)(2) of the Internal Revenue Code for each calendar year in which the taxable year begins, the State Treasurer shall issue a refund to the ABLE account contributor.

(c) The State Treasurer shall adopt procedures to ensure that contributions to the account of each ABLE account holder do not exceed the total maximum amount determined under Sec. 529A(b)(6) of the Internal Revenue Code.

#### Section 18-19C-10

(a) Unless prohibited by federal law, on the death of a designated beneficiary, money and assets in an ABLE account may be transferred to:

  (1) The estate of the designated beneficiary; or

  (2) An ABLE account for another eligible individual specified by the designated beneficiary or the estate of the designated beneficiary.

(b) Unless required by federal law, an agency or instrumentality of the State may not seek payment under Sec. 529A(f) of the Internal Revenue Code from an ABLE account or its proceeds for any amount of medical assistance paid for the designated beneficiary.

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Md. Code Ann., Educ. (as displayed at mgaleg.maryland.gov, October 16, 2026)