Guidance for Rep Payees in Managing ABLE Accounts

In some circumstances, individuals with disabilities need assistance managing their finances, including any money they have saved in an ABLE account. Representative Payees (generally called Rep Payees) can step in and provide that assistance. We offer guidance below on the Rep Payee role as it relates to ABLE accounts.

A Rep Payee is a designation by the Social Security Administration for a person who provides assistance in managing the finances of individuals who have a disability that prevents them from managing or directing the management of their own disability benefits. Rep Payees are required to keep specific records of the use of benefit funds and be able to provide reports on that usage upon request. The Rep Payee's main duties are to ensure that benefits are used for current and future needs. A Rep Payee is not in charge of a person's money in general unless granted that authority by additional means. Being an authorized representative, having power of attorney, or having a joint bank account with the beneficiary is not the same as being a Rep Payee.

ABLE accounts, like the Attainable^® Savings Plan here in Massachusetts, are special tax-advantaged accounts for people with disabilities created by the Stephen Beck Jr. Achieving a Better Life Experience (ABLE) Act signed into law in 2014. These investment accounts can help individuals save by not affecting eligibility for federal public benefits like SSI or Housing Waivers (until the accounts contain $100,000).

The person who manages an ABLE Account is called a Person with Signature Authority or PSA. A Rep Payee is one of the relationships with a beneficiary that someone can have to become a PSA, who is able to assist them with opening and maintaining an ABLE Account. The Social Security Administration requires that the Rep Payee must title the ABLE account to show that the Rep Payee has a fiduciary interest in the funds. The account title must show that the beneficiary owns the funds but has no access to them.

The Social Security Administration recommends that the ABLE account be titled in one of the following ways:

• (Beneficiary's name) by (Rep Payee's name), Representative Payee.
• (Rep Payee's name), Representative Payee for (beneficiary's name).

Following these titling guidelines will not only ensure that you are in compliance with the SSA but will also assist you with ensuring that the beneficiary and the Rep Payee can make deposits and withdrawals from various sources that require your names be present on the account.

To review the specific guidelines from the Social Security Administration regarding ABLE Accounts and Representative Payees, please visit the SSA webpage here.

If you have any questions or want to learn more about Attainable, please contact us at (844) 458-2253 or visit mefa.org/able.