Texas ABLE Account Information

  • Status: Open for Enrollment
  • Program Name: Texas ABLE Program
  • Program Manager: NorthStar Financial Services Group
  • Program Investment Institutions: Vanguard, PIMCO and Eaton Vance
  • Program Website: http://texasable.org/
  • Annual Contribution Limit: $15,000.00

FAQ

Does this program offer enrollment to out of state residents?

No

Is there a state income tax deduction or credit for contributions made into accounts opened in this state by state residents?

No. Texas does not have a State Income Tax.

Who is the program administrator?

NorthStar Financial Services Group, LLC

Is there an initial minimum contribution requirement to open an ABLE account? 

Yes. The initial minimum contribution requirement to open an ABLE account is $50.00. 

Is there an annual set fee to maintain the account? 

Yes: $48 per year

Is there a required minimum contribution to your account? If so, what is the amount?

The required minimum contribution is $25.00.

Are there fees or restrictions to the number of disbursement you are allowed?

There is a $1 charge for each withdrawal by ACH in excess of 2 per month; there is a $5 charge for each withdrawal by check.

Can I roll over my ABLE account to another ABLE program? If so, what is the fee to do so?

Yes. There are currently no fees associated with rolling over your ABLE account from one ABLE program to another ABLE program.

Is there a “debit card/purchasing card” available with the program? If so, what is the added cost?

The Texas ABLE Program does not offer a debit card at this time; however, they do offer an FDIC-insured Bank Savings Account Option.

Who is the investment manager?

Vanguard, PIMCO and Eaton Vance

How many investment options are associated with the program? Do those investment options vary in risk?

There are 4 options; 3 are managed allocation portfolio options and there is 1 FDIC-insured bank option. Texas ABLE offers Aggressive Allocation, Moderate Allocation, and Moderately Conservative Allocation portfolios with varying degrees of risk and an FDIC-insured Bank Savings Account Option.

Is there a fee associated with the investment choices? If so, how much?

Yes. Total Annual Asset-Based Fees range from .25-.65 depending on investment choice.

Are there other characteristics unique to the program?

Texas ABLE offers online account management; a gifting feature; and payroll deduction. There is no enrollment fee; program has low minimum contribution limit. The program is established and maintained by the Texas Prepaid Higher Education Tuition Board with assistance from the Texas Comptroller of Public Accounts.