Glossary of Municipal Securities Terms


A program established under Section 529A of the Internal Revenue Code to permit a state, or an agency or instrumentality thereof, to establish and maintain a tax-advantaged savings program to help support individuals with disabilities in maintaining health, independence, and quality of life. Contributions to an ABLE program generally are used to acquire units in a state trust and are invested consistent with the trust’s investment objectives. Units of the trust generally are municipal fund securities. Under current federal tax law, earnings in an ABLE account accrue free of federal income tax, and distributions from an ABLE account that are used for the qualified disability expenses of the designated beneficiary are excludable from the designated beneficiary’s taxable income. See: DESIGNATED BENEFICIARY; MUNICIPAL FUND SECURITY; QUALIFIED DISABILITY EXPENSES.

Last updated: February 23, 2018

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