The payee must title the ABLE account to show that the payee has a fiduciary interest in the funds. The account title must show that the beneficiary owns the funds but does not have access to them. Any account title establishing a fiduciary interest is acceptable; however, the preferred account title is (Name of Beneficiary) by (Name of Representative Payee), representative payee. Please document the account title in a Note on the Relationship Details tab in eRPS. For more information on account titling, see GN 00603.010B.1 and GN 02402.055.

The payee must have signature authority for the ABLE account. A person with signature authority may establish and control an ABLE account on behalf of a minor child beneficiary or a beneficiary who is otherwise unable to manage the account. The Internal Revenue Service’s (IRS) rules allow a payee to have signature authority over a beneficiary’s ABLE account.

In some instances, the payee appointed by SSA may not be the same person who has signature authority over the beneficiary’s ABLE account. For example, a legal guardian may have signature authority on an ABLE account for a beneficiary whose payee is someone other than the legal guardian. If the payee does not have signature authority over the ABLE account, they cannot deposit SSA benefits to the ABLE account.

Ask the payee why the beneficiary removed the payee’s signature authority and consider whether the payee remains suitable. After evaluation, if a change of payee is appropriate, follow the successor payee instructions in GN 00504.100. Document your conversation with the payee on an Report of Contact in eRPS on the Beneficiary Details tab. Always be alert to changes in circumstances that might indicate the need for a new capability determination, see GN 00502.055.

The payee must determine the beneficiary’s current and future needs and use the benefits to meet those needs. The payee must conserve any SSA funds remaining after meeting the beneficiary’s needs.

Funds in an ABLE account generally are meant to assist a person in the purchase of items and services that are covered as “qualified disability expenses” (QDE). See SI 01130.740B.8 for information about QDEs. If funds are used for non-QDEs, a portion of the investment earnings included in the distributed funds will be countable income and subject to a 10 percent additional tax under IRS rules. Additionally, funds used for housing and non-QDEs are subject to the SSI resource-counting rules. For an explanation about how ABLE income is counted, see SI 01130.740C.1. For more information about when ABLE resources are counted, as well as examples about how QDEs affect income and resources, see SI 01130.740C.5.

Payees are expected to understand IRS's rules for using an ABLE account, including the tax implications of spending the beneficiary’s ABLE funds on non-QDEs. If the beneficiary incurs a tax penalty because the payee spent benefits on a non-QDE, consider whether the payee remains suitable.

Payees are responsible for keeping records and reporting on how they spent or conserved the benefits. Non-exempt payees report on the use of benefits by completing a Representative Payee Report (Form SSA-623, SSA-6230, SSA-6234, or SSA-6233). We mail the form to the payee once a year. Payees can also file the report online using iRPA or myRPA. Payees must complete the report annually, unless they are exempt under GN 00605.015. All payees must also report on the use of benefits to SSA upon request.

Payees must keep detailed and accurate records of how they use benefits. We advise that payees keep records for at least two full calendar years.

ABLE accounts, however, may hold funds from a variety of sources, and there may be incentives to encourage contributions from the beneficiary’s family and friends. Generally, we do not recommend that a payee mix benefits with other funds that belong to the beneficiary. If the payee chooses to mix benefits with other funds that belong to the beneficiary, the payee must maintain a recordkeeping system to differentiate SSA benefits from other funds.

ABLE accounts offer options for payees to grow beneficiaries’ funds through investing. The available investment options present varying risk levels. If a payee chooses to invest funds in an ABLE account, they must do so carefully. After meeting the beneficiary’s current needs, the payee must conserve any remaining funds. Payees must comply with SSA’s rules on conservation and investment of benefit payments. See GN 00603.010 and GN 00603.040 for requirements on conserved funds and investments.

If there is a change of payee, or if the beneficiary receives direct payment, the payee must return any conserved funds and interest earned thereon, including SSA funds held in an ABLE account. Generally, the payee must return the conserved funds to SSA. On a case-by-case basis, we may permit the former payee to transfer funds directly to the new payee or the beneficiary.