Alliance), the Department chooses the Underlying Funds and the allocations within the Asset Allocation Investment Options, monitors investment performance, and oversees the Checking Account Option. The Department also provides marketing for PA ABLE. Pursuant to a contract expiring on June 30, 2028, unless earlier terminated, Ascensus College Savings Recordkeeping Services, LLC provides recordkeeping and Ascensus Investment Advisors, LLC provides investment management services. The Asset Allocation Investment Options invest in products offered by The Vanguard Group, Inc., Capital Group, Charles Schwab Investment Management, Inc., dba Schwab Asset Management iShares by Blackrock Inc., and Sallie Mae Bank. The Checking Account Option uses a bank product from Fifth Third Bank. (See Part 2.C.2.) The following replaces the first paragraph of Part 2.C.1. on page 32 of the Disclosure Statement: PA ABLE offers investment vehicles that are similar to mutual funds and other investment products. You can choose from among six Asset Allocation Investment Options in which the funds (assets) are in different combinations (allocations) of stock funds, bond funds, and cash. The combinations range from aggressive investments (mostly stocks) to conservative investments (mostly bonds and cash). The asset allocations (combination of stocks, bonds, and cash) are static; that is, they do not change over time. Each of the Asset Allocation Investment Options invests in products from The Vanguard Group, Inc., Capital Group, Charles Schwab Investment Management, Inc., dba Schwab Asset Management, iShares by Blackrock Inc., and/or Sallie Mae Bank, (collectively, “Investment Firms”). The products include mutual funds, Exchange Traded Funds (ETFs), and/or a high yield savings account (the “Underlying Funds”). The following replaces the first paragraph of Part 2.C.2.b. on page 33 of the Disclosure Statement: Each Asset Allocation Investment Option invests its assets in one or more Underlying Fund(s). Currently these funds and the share class for each are: • Vanguard Institutional Index Fund (VIIIX) • Vanguard Extended Market Index Fund (VEMPX) • Vanguard Total Bond Market Index Fund (VBMPX) • Vanguard Short-Term Bond Index Fund (VBIPX) • Vanguard Short-Term Inflation-Protected Securities Index Fund (VTSPX) • Vanguard Developed Market Index Fund (VTMNX) • iShares Core International Aggregate Bond ETF (IAGG) • Vanguard Emerging Markets Stock Index Fund (VEMIX) statement of additional information. You can obtain a copy of the current prospectus, the statement of additional information, or the most recent semiannual or annual report of any Underlying Fund by visiting the appropriate Investment Manager’s website or phone number: • Blackrock www.ishares.com • Capital Group www.capitalgroup.com • Schwab www.schwabassetmanagement.com • Vanguard www.vanguard.com • Fifth Third Bank www.53.com The following replaces the chart in Part 2.C.2.b. on page 34 of the Disclosure Statement: Vanguard Short-Term Inflation-Protected Securities Index Fund (VTSPX) 14.00% iShares Core International Aggregate Bond ETF (IAGG) 4.00% Investment Strategy: The Checking Account Option balances are insured up to the maximum amount permitted by law. The standard insurance amount is $250,000 per depositor, for each deposit insurance ownership category. Please visit www.fdic.gov for more information about FDIC insurance coverage. The checking account is opened through and under the restrictions and oversight of PA ABLE and shall be subject to all of the requirements and limitations set forth in this Disclosure Statement, as amended. All assets invested through the Checking Account Option are, and at all times will remain, assets of PA ABLE until withdrawn. The Investment Option invests all of its assets in a checking account held at Fifth Third Bank, NA. Investments in the Checking Account Option will earn varying rates of interest. Contributions will not earn interest until the hold period expires (see Part 2.B.3.) and funds are deposited to the account at Fifth Third Bank. The interest rate generally will be equivalent to short-term deposit rates. Interest will be compounded daily based on the actual number of days in a year (typically 365 days, except for 366 days in leap years) and will be credited to the Checking Account Option on a monthly basis. The interest on the Checking Account Option is expressed as an Annual Percentage Yield (“APY”). The APY on the Checking Account Option will be reviewed by Fifth Third Bank on a periodic basis and may be recalculated as needed at any time. To see the current Checking Account Option APY please go to www.53.com or call toll-free 888-516-2375. The Checking Account Option may not be established if it is determined that distributions from such Account are subject to restrictions by court order or otherwise. Investment Risks: To the extent that FDIC insurance applies, the Checking Account Option is primarily subject to the risk that the return on the underlying Checking Account will vary because of changing interest rates and that the return on the Checking Account will decline because of falling interest rates. See, Appendix B for additional terms and conditions applicable to the Checking Account Option. FDIC Insurance: Subject to the application of Fifth Third Bank (for the Checking Account Option) and FDIC rules and regulations to each Account Owner, funds in the Checking Account Option will retain their value as a result of FDIC insurance. FDIC insurance is provided for the Checking Account Option which invests in a checking account. Contributions to and earnings on the investments in the Checking Account Option are insured by the FDIC up to the maximum limit established by federal law, which currently is $250,000 per depositor. The amount of FDIC insurance provided to an Account Owner investing in the Checking Fifth Third Bank, as determined in accordance with Fifth Third Bank and FDIC rules and regulations. Each Account Owner should determine whether the amount of FDIC insurance available to the Account Owner is sufficient to cover the total of the Account Owner’s investment in the Checking Account Option plus the Account Owner’s other deposits at Fifth Third Bank. For the Checking Account Option, PA ABLE is not responsible for determining the amount of FDIC insurance provided to an Account Owner. The following replaces Part 2.C.4.f. on page 45 of the Disclosure Statement: Investment Objective: The Fund seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in emerging market countries. Investment Strategy: The Fund employs an indexing investment approach designed to track the performance of the FTSE Emerging Markets All Cap China A Inclusion Index. As of October 31, 2021, the FTSE Emerging Markets All Cap China A Inclusion Index is a market-capitalization-weighted index that is made up of approximately 4,284 common stocks of large-, mid-, and small-cap companies located in emerging markets around the world. The Fund invests by sampling the Index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the Index in terms of key characteristics. These key characteristics include industry weightings and market capitalization, as well as certain financial measures, such as price/earnings ratio and dividend yield. Investment Strategy: The Fund employs an indexing investment approach designed to track the performance of the FTSE Developed All Cap ex US Index, a market-capitalization weighted index that as of December 31, 2021, is made up of approximately 4,022 common stocks of large-, mid-, and small-cap companies located in Canada and the major markets of Europe and the Pacific region. The Fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the Index, holding each stock in approximately the same proportion as its weighting in the Index. Investment Risks: The following is added as Part 2.C.4.k. on page 51 of the Disclosure Statement: Objective: The Fund’s primary investment objective is to provide you with a high level of current income. Its secondary investment objective is capital appreciation. Strategy: The Fund invests primarily in higher yielding and generally lower quality debt securities (rated Ba1 / BB+ or below by Nationally Recognized Statistical Rating Organizations or unrated but determined by the fund’s investment adviser to be of equivalent quality), including corporate loan obligations. Such securities are sometimes referred to as “junk bonds.” The Fund may also invest a portion of its assets in securities of issuers domiciled outside the United States. Exposure to Country, Region, Industry or Sector. Subject to the fund’s investment limitations, the fund may have significant exposure to a particular country, region, industry or sector. Such exposure may cause the fund to be more impacted by risks relating to and developments affecting the country, region, industry or sector, and thus its net asset value may be more volatile, than a fund without such levels of exposure. For example, if the fund has significant exposure in a particular country, then social, economic, regulatory or other issues that negatively affect that country may have a greater impact on the fund than on a fund that is more geographically diversified. administrators and other financial intermediaries, experience similar cybersecurity breaches and potential outcomes. Cybersecurity risks may also impact issuers of securities in which the fund invests, which may cause the fund’s investments in such issuers to lose value. Interest Rate Risk. The values and liquidity of the securities held by the fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. The fund may invest in variable and floating rate securities. When the fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of the fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, the fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened. Investing in Debt Instruments. The prices of, and the income generated by, bonds and other debt securities held by the fund may be affected by factors such as the interest rates, maturities and credit quality of these securities. Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Also, when interest rates rise, issuers are less likely to refinance existing debt securities, causing the average life of such securities to extend. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Changes in actual or perceived creditworthiness may occur quickly. A downgrade or default affecting any of the fund’s securities could cause the value of the fund’s competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives. Liquidity Risk. Certain fund holdings may be or may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile or difficult to determine, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the fund may be unable to sell such holdings when necessary to meet its liquidity needs, or to try to limit losses, or may be forced to sell at a loss. Management. The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives. Market Conditions. The prices of, and the income generated by, the securities held by the fund may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries or companies; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations. Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region, including actions taken by governmental or quasi-governmental authorities in response to any of the foregoing, could have impacts on global economies or markets. As a result, whether or not the fund invests in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the fund’s investments may be negatively affected by developments in other countries and regions. Other risks. In addition to the principal investment strategies described above, the fund has other investment practices that are described in the statement of additional information, which includes a description of other risks related to the fund’s principal investment strategies and other investment practices. The fund’s investment results will depend on the ability of the fund’s investment adviser to navigate the risks discussed above as well as those described in the statement of additional information. The following is added to Appendix D on page 122 of the Disclosure Statement: Capital Group: Capital Group Companies, Inc. The parent company to the investment manager of the American Funds. The following replaces the term Investment Firms in Appendix D: Key Terms on page 124 of the Disclosure Statement: Investment Firms: BlackRock, Capital Group, Fifth Third Bank, Sallie Mae Bank, Schwab and Vanguard are the firms whose Underlying Funds are used. PENNSYLVANIA ABLE SAVINGS PROGRAM DISCLOSURE STATEMENT THIS DISCLOSURE STATEMENT CONTAINS IMPORTANT INFORMATION TO BE CONSIDERED BEFORE MAKING A DECISION TO CONTRIBUTE TO THE PENNSYLVANIA ABLE SAVINGS PROGRAM (“PA ABLE”) INCLUDING INFORMATION ABOUT RISKS, FEES, AND EXPENSES. IT SHOULD BE READ THOROUGHLY AND RETAINED FOR FUTURE REFERENCE. NO ONE IS AUTHORIZED TO PROVIDE INFORMATION THAT IS DIFFERENT FROM THE INFORMATION IN THIS DISCLOSURE STATEMENT. ACCOUNTS NOT INSURED OR GUARANTEED ACCOUNTS ESTABLISHED UNDER PA ABLE, INCLUDING BOTH CONTRIBUTIONS AND INVESTMENT RETURNS ON THOSE CONTRIBUTIONS, IF ANY, ARE NOT INSURED OR GUARANTEED BY THE COMMONWEALTH OF PENNSYLVANIA, THE PENNSYLVANIA TREASURY DEPARTMENT, PA ABLE, OR ANY CONSULTANT, CONTRACTOR, OR ADVISOR RETAINED BY THE COMMONWEALTH, THE TREASURY DEPARTMENT, OR PA ABLE. ACCOUNT OWNERS IN PA ABLE ASSUME ALL INVESTMENT RISK, INCLUDING THE POTENTIAL LOSS OF CONTRIBUTIONS AND LIABILITY FOR ADDITIONAL INCOME TAXES OR PENALTIES SUCH AS THOSE LEVIED FOR NON-QUALIFIED WITHDRAWALS. NOTWITHSTANDING THE ABOVE, THE CHECKING ACCOUNT OPTION IS FDIC INSURED UP TO $250,000 SUBJECT TO CERTAIN RESTRICTIONS. SECURITIES NOT REGISTERED THESE INVESTMENT PRODUCTS HAVE NOT BEEN REGISTERED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION OR WITH ANY STATE SECURITIES COMMISSION. NEITHER THE U.S. SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED INTERESTS IN PA ABLE OR PASSED ON THE ADEQUACY OF THIS DISCLOSURE STATEMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. TAX AND OTHER ADVANTAGES OF HOME STATE PROGRAMS FOR RESIDENTS OF STATES OTHER THAN PENNSYLVANIA, IF YOUR STATE OR THE ACCOUNT OWNER’S/BENEFICIARY’S STATE OF RESIDENCY (IF DIFFERENT) SPONSORS AN ABLE PROGRAM, THAT PROGRAM MAY OFFER STATE INCOME TAX AND OTHER BENEFITS NOT AVAILABLE TO YOU THROUGH THE PENNSYLVANIA ABLE SAVINGS PROGRAM. IF YOU ARE NOT A PENNSYLVANIA TAXPAYER OR RESIDENT, PLEASE CONSULT YOUR FINANCIAL ADVISOR, TAX ADVISOR, OTHER ADVISOR, OR YOUR HOME STATE’S ABLE PROGRAM TO LEARN MORE ABOUT HOW STATE-BASED BENEFITS (OR ANY LIMITATIONS) WOULD APPLY TO YOUR SPECIFIC CIRCUMSTANCES. Information in this disclosure statement is believed to be accurate as of the date of this disclosure statement and is subject to change without notice. Pennsylvania ABLE Savings Program TABLE OF CONTENTS PA ABLE – AT A GLANCE .............................................................................................. 8 Part 1. General Description of the Pennsylvania ABLE Savings Program ................. 12 A. Program Summary ................................................................................................ 12 B. Role of Department ............................................................................................... 15 Part 2. How PA ABLE Works ........................................................................................ 16 A. Eligibility for, Opening, and Maintaining Your Account ..................................... 16 1. Eligibility....................................................................................................... 16 a. Social Security Disability Eligibility Requirements ............................ 16 b. Self-certification Eligibility Requirements ......................................... 17 c. Changes in the Eligible Individual’s Condition.................................. 17 2. Opening and Maintaining Your PA ABLE Account ...................................... 18 a. The Enrollment Process ....................................................................... 18 i. Who may open an Account ............................................................ 18 ii. Authorized Individuals .................................................................. 18 ii. Enrollment Form and initial contribution .................................... 19 b. Updating Account Information ............................................................. 20 c. Designating or Changing Individuals with Control of or Access to the Account ........................................................................................... 21 i. Change of Account Owner ............................................................ 21 ii. Successor Owner ........................................................................... 21 iii. Authorized Individuals .................................................................. 22 iv. Interested Party ............................................................................. 23 d. Account Restrictions ............................................................................ 23 B. Making Contributions ........................................................................................... 24 1. Who Can Contribute .................................................................................... 24 2. Contribution Amounts and Limitations ........................................................ 24 3. Pennsylvania Tax Deductibility of Contributions ........................................ 25 4. Contribution Date ........................................................................................ 25 5. Directing Contributions to Investment Options ........................................... 26 6. Contributing through the Systematic Exchange Program ........................... 26 7. Methods of Contributing .............................................................................. 27 a. Checks and Money Orders ................................................................... 27 b. Wire Transfer ....................................................................................... 28 c. Electronic Funds Transfer (EFT) ......................................................... 28 d. Recurring Contributions ....................................................................... 28 e. Payroll Deduction ................................................................................ 29 f. Rollover from another qualified ABLE program ................................. 30 g. Rollovers from 529 Accounts to ABLE Accounts ................................. 30 h. Transfers between PA ABLE Accounts ................................................ 31 i. Ugift® ................................................................................................... 31 C. Choosing your Investment Options ....................................................................... 32 1. Investment Options Summary ...................................................................... 32 2. Overview of Investment Options and Underlying Funds ............................. 32 a. Overview of Asset-allocation Investment Option Choices .................. 32 b. Overview of Underlying Funds and Share Classes ............................ 33 c. Overview of Checking Account Option .............................................. 35 3. Investment Option Descriptions ................................................................... 35 a. Aggressive Option ............................................................................... 35 b. Moderately Aggressive Option ........................................................... 36 c. Growth Option .................................................................................... 37 d. Moderate Option ................................................................................. 38 e. Moderatly Conservative Option .......................................................... 39 f. Conservative Option ........................................................................... 40 g. Checking Account Option Description ............................................... 41 4. Underlying Funds Descriptions ................................................................... 43 a. Vanguard Institutional Index Fund (VIIX) ......................................... 43 b. Vanguard Extended Market Index Fund (VEMPX) ............................ 43 c. Vanguard Total Bond Market Index Fund (VBMPX) ......................... 44 d. Vanguard Short-Term Bond Index Fund (VBMPX) ............................ 44 e. Vanguard Short-Term Inflation-Protected Securities Index Fund (VTSPX) ..................................................................................... 45 f. Schwab Emerging Markets Equity ETF (SCHE) ................................ 45 g. Schwab US REIT ETF (SCHH)........................................................... 47 h. iShares Core MSCI EAFE ETF .......................................................... 49 i. iShares Core International Aggregate Bond ETF .............................. 49 j. Sallie Mae High Yield Savings Account.............................................. 50 5. Additional Investment Information .............................................................. 51 a. How Your Units are Valued ................................................................ 51 b. Treatment of Dividends and Capital Gains ........................................ 51 c. Requesting Additional Information about certain Underlying Investments .......................................................................................... 51 d. Individual Investment Option Performance ........................................ 52 D. Fees and Expenses ................................................................................................ 53 1. Asset-allocation Investment Option Asset-based Fees ................................ 53 2. Checking Account Option Fees .................................................................... 54 3. Account Maintenance Fee………………………………………………………. 55 4. Other Charges…………………………………………………………………… . 55 E. Making Withdrawals ............................................................................................. 55 1. In General .................................................................................................... 55 2. Recontribution of Withdrawals .................................................................... 56 3. Withdrawal Payment Methods ..................................................................... 57 4. Systematic Withdrawal Program ................................................................. 57 5. Types of Withdrawals ................................................................................... 57 a. Qualified Withdrawals ......................................................................... 58 i. How to Request ............................................................................. 58 ii. Tax Consequences ......................................................................... 59 iii. Government Benefit Consequences ............................................... 59 b. Direct Rollovers ................................................................................... 59 i. How to Request ............................................................................. 59 ii. Tax Consequences ......................................................................... 60 iii. Government Benefit Consequences ............................................... 60 c. Indirect Rollovers ................................................................................. 60 i. How to Request ............................................................................. 60 ii. Tax Consequences ......................................................................... 60 iii. Government Benefit Consequences ............................................... 61 d. Transfer between PA ABLE Accounts .................................................. 61 i. How to Request ............................................................................. 61 ii. Tax Consequences ......................................................................... 61 iii. Government Benefit Consequences ............................................... 61 e. Non-qualified Withdrawals .................................................................. 61 i. How to Request ............................................................................. 61 ii. Tax Consequences ......................................................................... 61 5. Withdrawal Upon Termination .................................................................... 62 a. General ................................................................................................. 62 b. Causes for Termination ........................................................................ 62 c. Written Request for Termination .......................................................... 63 d. Value of Account Upon Termination ................................................... 64 F. Account Security ................................................................................................... 65 1. In General .................................................................................................... 65 2. Online Account Security .............................................................................. 65 Part 3. Your Account’s Effect on Means-Tested Benefits ............................................. 65 A. In General ............................................................................................................ 65 B. Supplemental Security Income .............................................................................. 65 1. Income Exclusions ....................................................................................... 66 2. Resources Exclusions ................................................................................... 67 a. ABLE Account Values up to $100,000 ................................................ 67 b. Qualified and Non-qualified Withdrawals .......................................... 67 3. Reporting to the Social Security Administration ......................................... 68 C. Medicaid (Medical Assistance) ............................................................................. 68 1. In General .................................................................................................... 68 2. In Pennsylvania ............................................................................................ 69 D. Other Means-Tested Benefit Programs ................................................................ 69 E. Additional Social Security Information ................................................................ 70 Part 4. Tax Information .................................................................................................. 70 A. Federal Tax Treatment ........................................................................................ 70 1. Tax Provisions Related to Contributions ..................................................... 70 2. Taxation on Earnings ................................................................................... 71 B. Pennsylvania Tax Treatment ................................................................................ 72 1. Tax Provisions Related to Contributions ..................................................... 72 2. Taxation on Earnings ................................................................................... 72 3. Taxation of Transfers Including Inheritance Tax ........................................ 72 4. Other States’ Tax Treatment ........................................................................ 73 Part 5. Risk Factors ........................................................................................................ 73 A. Status of PA ABLE as a Qualified ABLE Program.............................................. 73 B. Investment Risks ................................................................................................... 73 C. Cybersecurity Risk ............................................................................................... 74 D. Force Majeure ..................................................................................................... 74 E. Program Structure Risks ....................................................................................... 75 F. Risk of Changes in Federal and State Law ........................................................... 75 G. No Indemnification................................................................................................ 76 H. No Security Registration ....................................................................................... 76 Part 6. Additional Legal and Administrative Information ............................................ 76 A. The Investment Guidelines ................................................................................... 76 B. PA ABLE Procedures and Requirements ............................................................. 76 C. Availability of Financial Statements and Other Reports ...................................... 76 D. Suitability .............................................................................................................. 76 E. Not an Offer to Sell ............................................................................................... 77 F. Federal Bankruptcy Exemption for Certain Contributions to Accounts .............. 77 G. Abandoned and Unclaimed Accounts ................................................................... 77 H. Limitation on Pledges, Assignments, and Loans .................................................. 77 I. Information Subject to Change ............................................................................. 77 J. Important Reference Material............................................................................... 78 K. Conflicts ................................................................................................................ 78 APPENDIX A: Pennsylvania ABLE Savings Program Participation Agreement APPENDIX B: Fifth Third Bank National Association Terms & Conditions APPENDIX C: Explanation of Investment Risk Factors APPENDIX D: Key Terms ABLE - AT A GLANCE Nature of the Pennsylvania ABLE Savings Program The Pennsylvania ABLE Savings Program (“PA ABLE”) is a tax- advantaged savings program offered by the Commonwealth of Pennsylvania to assist individuals with disabilities and their families in saving for disability-related expenses without jeopardizing their government benefits. Role of the PA Treasury PA ABLE is administered by the Pennsylvania Treasury Department (the “Department”). In conjunction with a multi-state alliance organized to provide ABLE programs at low cost (the National ABLE Alliance), the Department chooses the underlying funds and the allocations within the Asset-allocation Investment Options, monitors investment performance, and oversees the Checking Account Option. The Department also provides marketing for PA ABLE. Pursuant to a contract expiring on June 30, 2028, unless earlier terminated, Ascensus College Savings Recordkeeping Services, LLC provides recordkeeping and Ascensus Investment Advisors, LLC provides investment management services (collectively “Ascensus”). The investments are made in products offered by The Vanguard Group, Inc., Charles Schwab Investment Management, Inc., dba Schwab Asset Management, iShares by Blackrock Inc., Sallie Mae Bank (collectively, “Investment Firms”) and a Checking Account Option offered by Fifth Third Bank. See Part 2.C. Account Owner /Beneficiary The Account Owner is the person whose disability-related expenses may be paid from the PA ABLE Account. By federal law, the Account Owner and Beneficiary of the Account must be the same person and the two terms may be used interchangeably. The Account Owner must be an “Eligible Individual” as defined in Section 529A of the Internal Revenue Code: that is, he or she must be entitled to benefits based on blindness or disability under Title II or Title XVI of the Social Security Act or certify under penalty of perjury that he or she meets other specified eligibility criteria. Additionally, the blindness or disability must have occurred before the Beneficiary’s 26th birthday. See Part 2.A. Authorized Individual Another person or entity may be designated to open and manage an Account on behalf of the Account Owner (Authorized Individual). An Account Owner, 18 years of age or older who has legal capacity to enter into a contract may select any adult to be an Authorized Individual if they choose. However, if the Account Owner is a minor or lacks legal capacity to contract, federal law provides a hierarchy of individuals who are permitted to be an Authorized Individual. Additionally, documentation is required to prove the Authorized Individual’s relationship to the Account Owner. See Part 2.A.2.a.(ii). Any reference in this Disclosure Statement to actions that must or may be taken by an Account Owner also apply to the Account Owner’s Authorized Individual unless the content clearly indicates otherwise. Contributions Initial and Additional Contribution: Minimum of $25 Current Annual Contribution Limit: $16,000 (increasing to $17,000 on January 1, 2023) Current Account Balance Limit: $511,758 Investment Options Investment Options include six Asset-allocation Investment Options ranging from aggressive to conservative as well as a Checking Account Option. Risk Factors of the Pennsylvania ABLE Savings Program Investing in the Pennsylvania ABLE Savings Program involves certain risks, including, but not limited to: (1) the possibility that you may lose money, (2) the risk of federal and/or state law changes, (3) the risk of any Pennsylvania ABLE Savings Program changes, including changes in fees, and (4) the risk that contributions to an Account may adversely affect the Account Owner’s eligibility for federal or state needs-based benefits. See Appendix C. Fees and Expenses There is an Annual Account Maintenance Fee. That fee is $59 which is discounted to $34 for those Account Owners who receive specified Account information electronically. The fee is taken quarterly ($14.75 or $8.50). The Asset-allocation Investment Options have annual asset-based fees ranging from 0.30% to 0.33%. The Checking Account Option has a monthly fee of $2.00, which is waived if bank statements are received electronically or the average monthly account balance is $250. Additional Checking Account Option fees may apply. See Part 2.D and Appendix B. Tax Advantages • Earnings accrue free from Pennsylvania and federal income tax and there is no Pennsylvania or federal income tax on Qualified Withdrawals. • Contributions up to $16,000 per year (increasing to $17,000 on January 1, 2023) may be deducted from taxable income on Pennsylvania state income tax. This benefit applies only to contributions made to PA ABLE accounts. • PA ABLE assets are not subject to Pennsylvania Inheritance Tax. Other Advantages ABLE savings are excluded from eligibility determinations for all federal means-tested benefits, including Supplemental Security Income (SSI) benefits (savings up to $100,000), Medicaid (called Medical Assistance in Pennsylvania), and state needs-based disability and health benefits as well as state student financial aid. See Part 1. Qualified Withdrawals A Qualified Withdrawal can be taken from a PA ABLE Account to pay for qualified expenses. Such expenses include, but are not limited to: education, housing, transportation, and assistive technology. See Part 2.E.4.a. Account Control While the federal ABLE Act requires that the Eligible Individual be the Account Owner of a PA ABLE Account, an Authorized Individual may be designated to open and maintain an Account on behalf of the Account Owner. An Account Owner, 18 years of age or older who has legal capacity to enter into a contract may select another person or entity to be an Authorized Individual if they choose. However, if the Account Owner is a minor or lacks legal capacity to contract, federal law provides a hierarchy of individuals who are permitted to be an Authorized Individual. Additionally, documentation is required to prove the Authorized Individual’s relationship to the Account Owner. See Part 2.A.2.c.iii. Online Applications and Account Information • Eligible Individuals may enroll online at PAABLE.gov, or print or call for an Enrollment Form and mail the completed form to: PA ABLE 1001 E 101st Terrace, Suite 200 Kansas City, MO 64131 • Account Owners may choose to receive some or all Account correspondence electronically, rather than in a paper format. Choosing to receive specified Account correspondence electronically will lower the Annual Account Maintenance fee. • Most Account activities can be completed online, including Account maintenance. See Part 2.A.2. Privacy Policies All information you provide to PA ABLE is treated confidentially. Ascensus is obligated to treat the information you provide to PA ABLE confidentially. Our Privacy Policies may be found at PAABLE.gov or by calling 855-529-ABLE (2253). Please see Appendix B for Fifth Third Bank’s Privacy Policy. Contact Information Website: PAABLE.gov Email: info@PAABLE.gov Phone: 855-529-ABLE (2253) PA ABLE Savings Program: Pennsylvania Treasury Bureau of Savings Programs 613 North Drive Room G-06 Harrisburg, PA 17120 Processing Center: PA ABLE 1001 E 101st Terrace, Suite 200 Kansas City, MO 64131 Part 1. General Description of the Pennsylvania ABLE Savings Program A. Program Summary This Program Summary provides a general overview of the Pennsylvania ABLE Savings Program (“Program”). The topics discussed in this Program Summary are discussed in more detail later in this Disclosure Statement. Before investing, please read the entire Disclosure Statement carefully to ensure that you fully understand PA ABLE. What is the PA ABLE Program? PA ABLE is a tax-advantaged savings program authorized by the laws of the Commonwealth of Pennsylvania, Act 17 of 2016, (“Enabling Law”) that is designed to help Eligible Individuals and their families save for disability-related expenses without jeopardizing their federal and state benefits. In accordance with the Enabling Law, the Department administers PA ABLE. PA ABLE offers investment vehicles that are similar to mutual funds and other investment products. You can choose from among six Asset-allocation Investment Options in which the funds (assets) are in different combinations (allocations) of stock funds, bond funds, and cash. The combinations range from aggressive investments (mostly stocks) to conservative investments (mostly bonds and cash). The asset allocations (combination of stocks, bonds, and cash) are static; that is, they do not change over time. Each of the Asset-allocation Investment Options invests in products from the Investment Firms. The products include mutual funds, Exchange-traded Funds (ETFs), and/or a high yield savings account (“Underlying Funds”). Although money contributed to PA ABLE that is invested in Asset-allocation Investment Options hold these products, including mutual funds, neither PA ABLE, nor any of the PA ABLE Program’s Asset-allocation Investment Options, are mutual funds. An investment in the Asset-allocation Investment Options is an investment in municipal fund securities that are issued and offered by PA ABLE. You will own units of the Asset-allocation Investment Options, not shares in the Underlying Funds. PA ABLE also offers an interest-bearing Checking Account Option managed by Fifth Third Bank, National Association. Both checks and a debit card can be used to make withdrawals from this Option. What are the tax advantages? There are numerous federal and state tax advantages, which are described in more detail later in this Disclosure Statement. Briefly, the federal and Pennsylvania income tax advantages are that the earnings, if any, on contributions are not taxed while the funds are in the account (tax-deferred) and, if used for Qualified Expenses, are not taxed at all (tax exempt). Additionally, contributions to a PA ABLE account may be deducted from taxable income on Pennsylvania state income taxes, within limits. What are the means-tested benefits advantages? The federal ABLE Act specifies that assets in and Qualified Withdrawals from an ABLE program are not counted against an individual for determining eligibility for ANY federal means-tested programs – with a limited exception for Supplemental Security Income (SSI) benefits. See Part 3.B. The Pennsylvania ABLE Act specifies that assets in and Qualified Withdrawals from the PA ABLE program shall not be included in the personal assets of the Account Owner when determining eligibility for disability, Medical Assistance (Medicaid) or other health benefits provided by the Commonwealth or for state student financial aid. What benefits are exclusive to the PA ABLE Program? Several benefits are available only through the PA ABLE Program. In addition to the protection of state means-tested benefits, mentioned above, the Pennsylvania ABLE Program’s exclusive benefits include: • Pennsylvania Income Tax Exclusion. For Pennsylvania taxpayers, the earnings in an Account are tax deferred for state income tax purposes and, if used for Qualified Expenses, tax exempt. • Pennsylvania Income Tax Deduction. Contributions up to $16,000 per year (increasing to $17,000 on January 1, 2023) may be deducted from taxable income on Pennsylvania state income taxes. • Pennsylvania Inheritance Tax Exclusion. Assets held in an Account are not included in a deceased’s assets. Assets held in any other state’s ABLE plan are fully counted – regardless of the size of the deceased’s assets. The inheritance tax rate varies depending on the relationship between the deceased and the heir; for parents, children or grandchildren, it is currently 4.5%, Siblings 12%, and others 15% of the entire value of the asset – not just the earnings. • Protection from Creditors. In Pennsylvania state proceedings, assets held in an Account are protected from creditors of the Account Owner or contributor. Assets in an out-of-state ABLE plan have no such protection. • PA ABLE Account Control. An Authorized Individual who opens an account for a minor child may retain control of the Account until the Account Owner can independently manage his or her own finances or until another person with a higher priority, and who provides required documentation, becomes the named Authorized Individual on an account. The Account Owner does not automatically assume control of the Account at age 18. Who can own a PA ABLE Account? In order to own an Account, the Account Owner must be an Eligible Individual under Section 529A of the Internal Revenue Code. An individual is an Eligible Individual for a calendar year if, the individual’s blindness or disability occurred before the individual’s 26th birthday and if, during that calendar year, at least one of the following is true: 1. The individual is currently receiving or entitled to SSDI benefits under Title II of the Social Security Act based on blindness or due to a disability; 2. The individual is currently receiving or entitled to SSI benefits under Title XVI of the Social Security Act based on blindness or due to a disability; 3. The individual is entitled to SSI benefits under Title XVI of the Social Security Act due to a disability, but has had that entitlement suspended solely due to excess income or resources; 4. The individual must have a condition on the Social Security Administration’s List of Compassionate Allowances Conditions and can certify that the condition produced marked and severe functional limitations prior to age 26; OR 5. The individual can certify to all of the following: a. They are either blind or they have a medically determinable physical or mental impairment that results in marked and severe functional limitations; b. Their impairment can be expected to result in death, is terminal, or it has lasted, or it can be expected to last for a continuous period of at least 12 months; c. They have a signed diagnosis from a physician and will retain a copy; d. Their diagnosis contains the name and address of the physician, as well as the date of diagnosis; e. The diagnosing physician meets the criteria of Section 1861(r)(1) of the Social Security Act (e.g., the physician is a Doctor of Medicine or osteopathy and is legally authorized to practice); and f. The applicable diagnostic code from those listed on Form 5498–QA (or in the instructions to such form) identifying the type of the individual’s impairment has been provided and is accurate. Federal law limits the number of accounts an Account Owner may have to just one. Separate accounts cannot be opened in different states or by different people on behalf of the Account Owner unless a second account is opened solely for the purposes of a rollover. In this case the account from which the rollover is being made must be closed within 60 days of the rollover. See Part 2.E.4.b. If the Account Owner is a minor or lacks legal capacity to contract, federal law provides a hierarchy of individuals who are permitted to be open and/or maintain the Account. An Account Owner who is 18 years of age or older and who has legal capacity to enter into a contract may select another person or persons or entity to open and/or maintain the Account on their behalf. This person is referred to as an “Authorized Individual”. The Authorized Individual acts as a fiduciary, must control the account for the benefit of the Eligible Individual, and may not have a beneficial interest in the account. Additionally, documentation is required to prove the Authorized Individual’s relationship to the Account Owner. See Part 2.A.2.a.ii. What expenses can an Account be used for? An Account can be used to pay for the Account Owner’s “Qualified Disability Expenses” which are any expenses that: • Are incurred at a time when the Account Owner is an Eligible Individual, • Relate to the blindness or disability of the Account Owner. Such expenses include expenses related to the Account Owner’s education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses that may be identified from time to time by the Internal Revenue Service (“IRS”). Federal law states that Qualified Disability Expenses include “basic living expenses,” are not limited to items that are “medically necessary” or for the sole benefit of the Beneficiary, and include expenses for maintaining or improving health, independence or quality of life. Can a PA ABLE Account be used for other purposes? Yes. You can access your Account at any time for any reason; however, there may be federal and state tax and benefit consequences for any use other than Qualified Disability Expenses – called “Non-qualified Withdrawals.” (See Part 2.E.4.e.) ABLE plans are intended to be used only to save for Qualified Disability Expenses. ABLE plans are not intended to be used, nor should they be used, by any taxpayer for the purpose of evading federal or state taxes or tax penalties. Taxpayers may wish to seek tax advice from an independent tax advisor based on their own particular circumstances. What are the fees? There is an Annual Account Maintenance Fee of $59, which will be taken quarterly ($14.75 per quarter). This Fee is reduced to $34 for accounts that elect to receive most account communications electronically ($8.50 per quarter). (See Part 2.D.3.) There are additional fees that depend on which Investment Options are chosen. For the Asset-allocation Options there is an annual asset-based fee of 0.30% to 0.33%, depending on the Asset-allocation Option you choose. (See Part 2.D.1.) For the Checking Account Option there is a monthly service charge of $2.00, which is waived if an Account Owner either establishes electronic delivery of statements or maintains an average monthly balance of at least $250.00. Additional Checking Account Option fees may apply. PA ABLE does not charge an enrollment fee. B. Role of Department The Pennsylvania ABLE Savings Program is administered by the Department. In conjunction with a multi-state alliance organized to provide ABLE programs at low cost (the National ABLE Alliance), the Department chooses the underlying mutual funds and the allocations within the Asset-allocation Investment Options, monitors investment performance, and oversees the Checking Account Option. The Department also provides marketing for PA ABLE. Pursuant to a contract expiring on June 30, 2028, unless earlier terminated, Ascensus College Savings Recordkeeping Services, LLC provides recordkeeping and Ascensus Investment Advisors, LLC provides investment management services. The Asset-allocation Investment Options invest in products offered by The Vanguard Group, Inc., Charles Schwab Investment Management, Inc., dba Schwab Asset Management iShares by Blackrock Inc., and Sallie Mae Bank. The Checking Account Option uses a bank product from Fifth Third Bank. (See Part 2.C.2.) Part 2. How PA ABLE Works A. Eligibility for, Opening, and Maintaining Your Account 1. Eligibility In order to own an Account, you must be an Eligible Individual under Section 529A. An individual is an Eligible Individual if he or she is entitled to benefits based on blindness or disability under Title II or XVI of the Social Security Act (“Social Security Disability Eligibility”) or if the individual self-certifies, under penalty of perjury, to PA ABLE that he or she meets specified eligibility requirements. (“Self-certification Eligibility”). In all cases, the blindness or disability must have occurred before the date on which the individual attained age 26. You can find an Eligibility Quiz at PAABLE.gov to assist in deciding if an individual is eligible to open an Account. This Quiz is for informational purposes only and should not be considered to be an official determination of eligibility. a. Social Security Disability Eligibility Requirements PA ABLE requires an individual who is claiming eligibility based on entitlement to Social Security Disability to certify in the enrollment process, subject to the penalties of 18 PA. C.S. Section 4904, relating to unsworn falsification to authorities, that he or she has received a benefit verification letter from the Social Security Administration and agrees to retain and provide the letter (or a genuine copy of the letter) to PA ABLE, the IRS, or the U.S. Treasury Department upon request. If the Account Owner fails to provide the benefit verification letter within 30 days of any request, PA ABLE reserves the right to suspend account activity until the requested information is provided or to Involuntarily Terminate the Account. (See Part 2.E.5.). For information about entitlement to benefits under Title II or XVI of the Social Security Act based on blindness or disability, please see https://www.ssa.gov/disability/professionals/bluebook/general-info.htm or contact your local Social Security Field Office. The individual must also certify that the blindness or disability occurred before the individual attained age 26. b. Self-certification Eligibility Requirements PA ABLE requires an individual who is claiming eligibility based on self-certification to certify, in the enrollment process, subject to the penalties of 18 PA. C.S. Section 4904, relating to unsworn falsification to authorities: (1) that he or she has a medically determinable physical or mental impairment which results in marked or severe functional limitations and which (i) can be expected to result in death or (ii) has lasted or can be expected to last for a continuous period of not less than 12 months. [Note: having a condition listed in the ‘‘List of Compassionate Allowances Conditions’’ maintained by the Social Security Administration (at https://www.ssa.gov/compassionateallowances/conditions.htm) satisfies this requirement.] (2) is blind (within the meaning of the Social Security Act). The individual must also certify that the disability or blindness occurred before the individual attained age 26. Unless you have a condition listed in the “List of Compassionate Allowances Conditions,” PA ABLE requires that you also certify under penalty of perjury that you have received a written diagnosis relating to the disability from a “licensed physician” (as defined in Section 1861(r) of the Social Security Act, 42 U.S.C. 1395x(r)). You must also agree to retain and provide a copy of the written diagnosis (including the name and physical address of the physician and the date of diagnosis) to PA ABLE upon request. If you fail to provide the requested information within 30 days of any request, PA ABLE reserves the right to suspend account activity until the requested information is provided or to Involuntarily Terminate the Account. (See Part 2.E.5.) c. Changes in the Eligible Individual’s Condition Federal law requires that the person be an Eligible Individual in each taxable year in which the ABLE account is active. Accordingly, PA ABLE requires you to notify PA ABLE if a change in your condition results in your no longer qualifying as an Eligible Individual. You must notify PA ABLE within thirty (30) business days of learning of the change. Failure to do so may result in an Involuntary Termination of your Account. (See Part 2.E.5.) If a change in your condition results in your no longer qualifying as an Eligible Individual, your Account may remain active until the end of the tax year in which the change occurs. In subsequent years, your Account can remain open but will be in suspension. During the period of suspension no additional contributions will be accepted and any withdrawals made will be Non- qualified Withdrawals. The suspension will be lifted if your condition changes so that you once again qualify as an Eligible Individual. 2. Opening and Maintaining Your PA ABLE Account a. The Enrollment Process (i) Who may open an Account. Eligible Individuals who are adults and have the legal capacity to contract, may open an Account or designate an Authorized Individual to open and maintain the account on their behalf. In addition to being an Eligible Individual, to open an Account, you must (1) be a U.S. citizen or resident alien, (2) be 18 years of age or older, (3) have a Social Security Number or other taxpayer identification number, and (4) have a U.S. permanent address that is not a Post Office Box. Additionally, to choose the Checking Account Option you must have a state-issued driver’s license, other government-issued identification, or insurance card. (ii) Authorized Individuals. An Account Owner who is 18 years of age or older and has legal capacity to contract may designate one or more Authorized Individuals to open and maintain the Account. However, if the Eligible Individual is a minor or an adult who lacks the capacity to contract, federal law limits who can serve as an Authorized Individual. In that case, the list of permitted Authorized Individuals, in order of priority, is the Account Owner’s: 1. agent under a power of attorney, 2. conservator or legal guardian, 3. spouse, 4. parent, 5. Sibling, 6. grandparent, or 7. representative payee appointed for the Account Owner by the SSA. The Authorized Individual must (1) be a U.S. citizen or resident alien, (2) be 18 years of age or older, (3) have a Social Security Number or other taxpayer identification number, and (4) have a U.S. permanent address that is not a Post Office Box. Please note that an Authorized Individual may not choose the Checking Account Option if the Eligible Individual is an adult who does not have a state-issued driver’s license, other government-issued identification, or insurance card. If an Authorized Individual is opening an Account for an adult who lacks the capacity to contract, he or she will be required to provide documentation proving the relationship in the list above under which he or she is claiming authority to be an Authorized Individual. Documentation that these Authorized Individuals are required to provide is: 1. Agent under a power of attorney - Executed power of attorney. If the power of attorney was executed more than 180 days before being presented to PA ABLE, it must be accompanied by an affidavit attesting that the power of attorney is in full force and effect. A template affidavit may be obtained by calling 855-529-ABLE (2253), 2. conservator or legal guardian - valid judicial guardianship order or other court order granting authority over the finances of the Account Owner, 3. spouse - marriage certificate, 4. parent - birth certificate, 5. Sibling (brother, sister, stepbrother, stepsister, half-brother, or half- sister) - birth certificates of both the Account Owner and the Sibling, 6. grandparent - birth certificates of both the Account Owner and child (i.e. parent of the Account Owner) of the grandparent, 7. representative payee appointed for the Account Owner by the SSA - representative payee letter issued by the SSA. An Account may have multiple Authorized Individuals. However, each Authorized Individual must have the same level of priority and will be required to provide appropriate documentation as described above. The Authorized Individual can exercise the same control over the Account as would an adult Account Owner with the capacity to contract. Any references in this Disclosure Statement to actions that must or may be taken by an Account Owner apply as well to an Account Owner’s Authorized Individual – unless the content indicates otherwise. Under Pennsylvania’s ABLE Act, an Authorized Individual who opens an account on behalf of a minor retains control of the Account even after the minor becomes an adult and maintains that control until he or she voluntarily relinquishes it or until another person with a higher priority, and who provides an Account Owner who has reached the age of 21 and has the capacity to contract may request a termination of the account without the consent of the Authorized Individual (see Part 2.E.5.C.). Please note that federal law requires that an Authorized Individual neither have nor acquire any beneficial interest in the Account during the lifetime of the Account Owner and that he or she administer the Account for the benefit of the Beneficiary. (iii) Enrollment Form and initial contribution. You may complete an Enrollment Form online at PAABLE.gov or by obtaining and mailing a paper form. A paper Enrollment Form can be obtained by downloading it from the website or by calling 855- 529-ABLE (2253). An initial contribution of at least $25.00 must be made at the time of enrollment unless you establish automatic transfers from your checking or savings account (Recurring Contribution), initiate payroll deduction, or indicate you will be making a Rollover from another ABLE account and initiate the Rollover process. (See Part 2.B.6.f.) If making an initial contribution, it will be credited to your Account when the Enrollment Form is received and all required information, including legal documentation that an Authorized Individual, if any, has authority to act on behalf of an Eligible Individual, has been provided in good order. By signing and submitting the Enrollment Form, you certify under penalty of perjury that you meet all the requirements to be an Eligible Individual or Authorized Individual, if applicable, and you agree that your Account is subject to the terms and conditions of the PA ABLE Contract, of which this Disclosure Statement, the PA ABLE Savings Program Participation Agreement (Appendix A), and the Enrollment Form are a part. The information you must provide on the Enrollment Form includes, but is not limited to, the name, address, date of birth, Social Security Number, and the Internal Revenue disability classification code of the Account Owner as well as the name, address, date of birth, and Social Security Number of the Authorized Individual, if any. You must provide a permanent U.S. address, which may not be a Post Office Box. You must also provide a mailing address, which may be different than your permanent address. Finally, you must provide the Account Owner’s state-issued identification number such as a driver’s license number unless the Account Owner is a minor. If the Account Owner is a minor, the Authorized Individual must provide a state-issued identification number., If the Account Owner is an adult but does not have a state-issued identification, the Checking Account Option may not be used. You will also be required to list your selection of Investment Options. Your selections can be changed, subject to some limitations. (See Part 2.B.4.) b. Updating Account Information You can update your account information and investment selections by calling 855-529-ABLE (2253), submitting a paper form, or online. To access your Account online, go to PAABLE.gov and click on “My Account.” There you simply register your Account by setting up a user name and password. Once you have registered, you can obtain Account information at any time and make changes to your Account. On a periodic basis, PA ABLE may utilize the National Change of Address (NCOA) database maintained by the U.S. Postal Service to verify the accuracy of Account addresses. PA ABLE may contact the Account Owner or Authorized Individual in order to verify the correct address and reserves the right to conform the Account record to the NCOA database information. Whenever a mailing address is changed, a confirmation of the change will be mailed to both the old and new addresses unless the change has been made utilizing NCOA. When NCOA is used, notification of the change will be included with the next quarterly statement. Whenever a permanent address is changed, a confirmation of the change will be mailed to the mailing address of record. If a mailing to the Account Owner’s or Authorized Individual’s mailing address of record is returned as undeliverable, PA ABLE will send a letter to that address in an attempt to confirm the mailing address. If the second mailing is returned as undeliverable, an outcall will be made to the telephone number of record. If this outcall is unsuccessful, PA ABLE will place a “stop mail hold” on the Account. An Account on stop mail hold will receive no mailings from PA ABLE until the mailing address of record is corrected. In the event that the Account Owner’s or Authorized Individual’s mailing address of record becomes invalid, PA ABLE reserves the right to use reasonable methods to find the correct mailing address including, but not limited to, utilizing internet-based informational databases and contacting other individuals whose information has been provided to PA ABLE including the Account Owner, the Authorized Individual, or Authorized Agents. If the current mailing address is found through any of these means, PA ABLE reserves the right to change the Account Owner’s or Authorized Individual’s mailing address of record to the current mailing address. c. Designating or Changing Individuals with Control of or Access to the Account (i) Change of Account Owner The Account Owner may be changed if the new Account Owner is an Eligible Individual and is a Sibling, of the current Account Owner. The Sibling may change their Investment Options up to two times per year, regardless of whether the former Account Owner had already done so that same year. The Sibling may also contribute up to the full Annual Contribution Limit, regardless of the dollar amount of contributions made by the former Account Owner. If the new Account Owner is not a Sibling of the current Account Owner, the change will be considered a Non-qualified Withdrawal (see Part 2.E.4.e.), any Account earnings may be subject to federal and state taxes and a federal penalty and the contribution into the new Account will be subject to the Annual Contribution Limit (currently $16,000, increasing to $17,000 on January 1, 2023). Additionally, the amount in the Account might be considered an asset of the former Account Owner and could impact that individual’s means-tested benefits. The IRS defines a Sibling as a brother, sister, stepbrother, stepsister, half-brother, and half-sister, whether by blood or adoption. (ii) Successor Owner The Account Owner may designate another individual who will become the owner of the Account in the event of the Account Owner’s death. The Successor Owner must be an Eligible Individual at the time that they take ownership of the Account and the Sibling of the Account Owner. The Successor Owner will take ownership of the Account upon submission of documentation of the Account Owner’s death and an Enrollment Application. The Account Owner can change or remove the Successor Owner at any time by completing an Account Information Change Form. If the Account Owner does not name a Successor Owner, Account assets will be paid to the Account Owner’s estate after any outstanding Qualified Withdrawals have been paid. (iii) Authorized Individuals • Control and relinquishing control. If an Authorized Individual has opened an account on behalf of an Account Owner, he or she may exercise the same control over the Account as the Account Owner. However, the Authorized Individual must act as a fiduciary for the Account Owner and may not have or acquire any beneficial interest in the Account during the lifetime of the Account Owner and must administer the Account for the benefit of the Account Owner. An Account Owner who is 18 years of age or older, has legal capacity to enter into a contract and has appointed an Authorized Individual to manage the Account may remove or replace the Authorized Individual at any time. An Authorized Individual may be removed or replaced by another person with a higher priority, and who provides required documentation. An Authorized Individual who has opened an Account for a minor may relinquish control of the account to the Account Owner at any time after the Account Owner reaches the age of 18 and has the capacity to contract. Additionally, an Account Owner who has reached the age of 21 and has the capacity to contract may request a termination of the account without the consent of the Authorized Individual. Any person aggrieved by the decision to Involuntarily Terminate the Account may file an appeal. An Authorized Individual who has opened an Account for someone who lacks capacity to enter into a contract may relinquish control of the Account to an individual listed in Part 2.A.2.a.(ii). The new Authorized Individual must be the highest ranking person on that list who is willing and able to assume management of the Account. • Successor Authorized Individual. An Account Owner or Authorized Individual may designate another individual to be a Successor Authorized Individual in the event that the current Authorized Individual dies or becomes unable or unwilling to continue to serve in the role. The Successor Authorized Individual will be subject to the eligibility requirements in Part 2.A.2.a.(ii). • Responsibility of Authorized Individual. The Authorized Individual is responsible for controlling the account for the benefit of the Account Owner. None of PA ABLE, the Department, Ascensus, the Investment Firms, or any federal or state entity or person will assume responsibility to ensure, or will incur any liability for failing to ensure, that any Authorized Individual (i) acts within the scope of his or her authority, or (ii) applies assets held on behalf of an Account Owner for proper purposes. • Request to remove or change an Authorized Individual Request. An Account Owner who is 21 years of age or older with capacity to contract that has named an Authorized Individual may remove that Authorized Individual at any time. Another person who ranks higher on the list in Part 2.A.2.a.(ii). than the current Authorized Individual of an Account Owner who is either under 21 years of age or lacks capacity to contract, is willing and able to act as Authorized Individual, may submit a written request to be named Authorized Individual. The request must include documentation showing the relationship to the Account Owner as listed in Part 2.A.2.a.(ii). Copies of the request shall be provided to the current Authorized Individual. Objections to any request shall be filed with PA ABLE no more than sixty (60) days after the request. All objections to the request must include a detailed description of the nature of the objection and documentation showing the current Authorized Individual’s relationship to the Account Owner as listed in Part 2.A.2.a.(ii). No withdrawals may be made from the Account while PA ABLE reviews the matter. (iv) Interested Party While joint ownership of an Account is not permitted, the Account Owner or Authorized Individual, unless prohibited by law or the legal document granting authority, can grant others permission, which is revocable, to receive duplicate statements and access information about the Account. Before the appointment of an Interested Party becomes effective, the Account Owner or Authorized Individual must complete and submit an Account Information Change Form. This form is available at PAABLE.gov or by calling 855-529-ABLE (2253). d. Account Restrictions PA ABLE reserves the right to suspend Account services for an Account for reasons including, but not limited to, receiving notice of a dispute regarding Account assets, Account control, or Account ownership or receiving notice or having reasonable belief that fraud may occur or has occurred. B. Making Contributions 1. Who Can Contribute Any person (including your friends and family), corporation, trust, or other legal entity may make a contribution to your Account. Contributions made by anyone other than the Account Owner (third party contributions) are completed gifts to the Account Owner and become the property of the Account Owner. Accordingly, such third party contributions may have federal gift and estate tax consequences. 2. Contribution Amounts and Limitations An initial contribution of a minimum of $25 is required at the time the account is opened unless one of several funding options is chosen. (See Part 2.B.7.) Additional contributions of $25 or more may be made at any time. You are not required to make a minimum number of contributions. How often you contribute is up to you. Generally, contributions from all sources may not exceed the annual exclusion for federal gift tax (currently $16,000 per year increasing to $17,000 on January 1, 2023) per Account (the “Annual Contribution Limit”). This amount may be adjusted for inflation from time to time. The current maximum Account Balance Limit is $511,758. Accounts that have reached the Annual Contribution or Account Balance Limit may continue to grow and accrue earnings. There is an exception to this limitation for contributions made by Account Owners who are employed. Such Account Owners may be able to contribute more than the Annual Contribution Limit to their Accounts. Account Owners who have not made contributions to a defined contribution plan, annuity contract, or deferred compensation plan during a tax year may contribute an amount above the annual ABLE contribution limit up to the lesser of the amount of their compensation or the federal poverty level for the prior year (Current and prior year federal poverty level information may be found at https://www.healthcare.gov/glossary/federal-poverty- level-fpl/)during that tax year. The federal poverty level dollar amount used is based upon the permanent address of the Account Owner. Any contribution above the Annual Contribution Limit may only be made by an Account Owner. In order to take advantage of this exception, Account Owners must complete the ABLE to Work Self Certification Form which may be found at PAABLE.gov or by calling 855-529-ABLE (2253). PA ABLE will notify you if you or another contributor attempt to make a contribution to an Account that would exceed the Annual Contribution Limit or the Account Balance Limit (“Contribution Limits”). PA ABLE will not knowingly accept and will reject contributions in excess of the Contribution Limits. If PA ABLE determines that a contribution in excess of a Contribution Limit has been accepted (“Excess Contribution”), the Excess Contribution and any earnings thereon will be promptly refunded less any amounts attributable to market losses suffered between the date of the contribution and the date of the refund. If a contribution is applied to an Account and it is later determined that the contribution resulted in exceeding a Contribution Limit, the Excess Contribution will be refunded to the contributor, or to the Account Owner if the contributor is unknown. Any refund of an Excess Contribution returned before the due date of the Account Owner’s deadline for filing federal tax returns will be treated as an amount not contributed. Excess Contributions inadvertently applied to an Account and not returned to the contributor on or before the due date (including extensions) of the Account Owner’s income tax return for the year in which the Excess Contributions were made will result in the imposition on the Account Owner of a 6% excise tax on the amount of Excess Contributions. None of the Commonwealth, PA ABLE, Ascensus, or the Management Firms will be responsible for any loss, damage, or expense incurred in connection with a rejected or returned contribution. 3. Pennsylvania Tax Deductibility of Contributions Contributions made to a PA ABLE account are deductible from the contributor’s Pennsylvania taxable income, within limits. Currently, each taxpayer may deduct up to $16,000 each year (increasing to $17,000 on January 1, 2023). The deductible amount will increase with any changes in the amount excludable for federal gift tax purposes under the Tax Code. There is no limit on the number of Beneficiaries for which one taxpayer may contribute. However, the total deductions taken by one taxpayer cannot exceed $16,000 per year (increasing to $17,000 on January 1, 2023), nor can it reduce the contributor’s taxable income to less than zero. The deduction may be taken by the contributor regardless of who owns the Account. Deductions can be taken for contributions made by any method listed below (see Part 2.B.7.). The contribution must be made within the tax year or by check dated by December 31 of the tax year in which the deduction is taken. The deduction is claimed on the contributor’s Pennsylvania income tax return (PA-40). If you are not a Pennsylvania resident, you may want to investigate whether your state offers an ABLE plan with tax advantages and other benefits to its residents. 4. Contribution Date PA ABLE will credit a contribution to your Account on the business day it is received if received prior to the close of the NYSE and the contribution is in good order. If received in good order after the close of the NYSE, a contribution will be credited on the next succeeding business day on which the NYSE is open. For contributions into the Checking Account Option, funds will be held for six business days if received prior to the close of the New York Stock Exchange (seven if received after the close of the New York Stock Exchange), before they begin accruing interest and become available for withdrawal. For Annual Contribution Limits and other tax purposes, mailed contributions will generally be treated as having been made in the year the checks are received if received by December 31 and subsequently paid. Electronic Fund Transfer (EFT) contributions will be treated as having been made in the year you initiate the transfer provided the funds are successfully deducted from your bank account. A Recurring Contribution will generally be considered received in the year the debit has been deducted from your account. Eastern Standard Time will be used in determining the year in which a contribution is made. In the event of Force Majeure, the Plan may experience processing delays, which may affect your trade date. In those instances, your actual trade date may be after the trade date you would have received, which may negatively affect the value of your Account. 5. Directing Contributions to Investment Options In the enrollment process you must specify how your contributions are to be distributed among the Investment Options you choose. For example, you could choose three investment options and allocate your contribution 60%, 35%, and 5%. Your designated distribution will apply to each subsequent contribution until you direct otherwise. You may direct otherwise each time you make a contribution to your Account. You can direct that the change in distribution apply only to the contribution you are making, but you can also direct that the change apply to future contributions as well. You may change the Investment Options in which previous contributions are already invested (including between Asset-allocation Investment Options and the Checking Account Option, if applicable) twice per calendar year (“Investment Exchange Limit”) or at the same time that you change the Account Owner. Please note that a decision to change the allocation of future contributions will not affect the allocation of assets already in your Account, and vice versa. 6. Contributing through the Systematic Exchange Program The Systematic Exchange Program is a way to make contributions on a regular basis from one Investment Option in your Account to one or more other Investment Options in your Account. The goal of the Systematic Exchange Program is to allocate contributions across Investment Options over a certain time period instead of making lump sum contributions. You may elect to apply the Systematic Exchange Program to new contributions or contributions already invested in your current Investment Options. Here’s how it works: You contribute a large fixed amount to one Investment Option (“Source Investment Option”) and direct PA ABLE to reallocate portions of that original contribution at regular intervals to other Investment Option(s) (“Target Investment Option(s)”). Because the amount you allocate is constant, more units in the Target Investment Options will be bought when the price is low and fewer units when the price is high. As a result, the average cost of your units may be lower than the average market price per unit during the time you are contributing. Any Investment Option except the Checking Account Option can serve as the Source Investment Option, and any Investment Option, including the Checking Account Option, can be the Target Investment Option. To participate in the Systematic Exchange Program, you must have at least $500 in the Source Investment Option. In addition, contributions to the selected Target Investment Option(s) must be made in increments of no less than $50 on a monthly or quarterly basis. The Systematic Exchange Program does not eliminate the risks of investing in financial markets and may not be appropriate for everyone. It does not ensure a profit or protect you against a loss. If you establish a Systematic Exchange Program with respect to a new contribution into your Account, the movement from the Source Investment Option to the Target Investment Option will not count towards your twice per calendar year Investment Exchange Limit. However, if you establish a Systematic Exchange Program with respect to money already in your account, that direction will count as one of your two Investment Exchange Limits, but subsequent movement from the Source Investment Option to the Target Investment Option will not. Changes you make to a Systematic Exchange Program already in place (for example, you change the dollar amount transferred each month) will count as one of your twice per calendar year Investment Exchange Limits. 7. Methods of Contributing Contributions can be made to your Account through any of the methods listed below. They may not be made with cash, stocks, securities, or other nonbank account assets. a. Checks and Money Orders Personal checks, cashier’s checks, certified checks, and money orders may be used. Third-party checks up to $10,000 payable to the Account Owner or Authorized Individual and properly endorsed to PA ABLE will be accepted. Checks should be payable to “PA ABLE” and accompanied by an Additional Contribution Form, which may be mailed to you and are available online. As an alternative to including an Additional Contribution Form, you may include the name of the Account Owner and Account number on the check or provide separate written instructions. PA ABLE will not accept the following: starter checks, bank courtesy checks, instant loan checks, credit card checks, traveler’s checks, foreign checks not in U.S. dollars, checks dated more than 180 days before receipt, postdated checks, checks with unclear instructions, or any other check PA ABLE deems unacceptable. If your check or money order is received at the physical location of our Processing Center (not just at its Post Office Box) in good order on a business day prior to the close of the New York Stock Exchange (NYSE), your contribution will be processed as of that day; if it is received after the close of the NYSE or on a non-business day, it will be processed on the next succeeding business day on which the NYSE is open. If you make a contribution by check that is returned unpaid by the bank upon which it is drawn, you will be responsible for any losses or expenses incurred by the Investment Options or PA ABLE and PA ABLE may charge your Account a reasonable fee. PA ABLE reserves the right to reject or cancel any contribution due to nonpayment. b. Wire Transfer Wire transfers are initiated from the contributor’s financial institution. Please call the Customer Service Center at 855-529-ABLE (2253) to obtain information regarding wire transfers. c. Electronic Funds Transfer (EFT) You may contribute to your Account by making a one-time Electronic Fund Transfer from your bank checking or savings account when you enroll online or any time after that by accessing “My Account” at PAABLE.gov or, if the bank account information has already been established on your Account, by calling our Customer Service Center at 855-529-ABLE (2253). Before making an initial EFT, you must provide certain information about the bank account from which money will be withdrawn. If the Account Owner or Authorized Individual is not the owner or a joint-owner of the bank account, you must first provide a signature of an individual who is the bank account owner. Please note that if the Account Owner or Authorized Individual is not the owner or joint- owner of the bank account from which an EFT contribution has been made, PA ABLE reserves the right to provide to the bank account owner(s), information related to contributions from that bank account and/or to remove the bank account information from the Account records upon receiving a request accompanied by a signature guarantee from any owner of the bank account. If an EFT contribution is returned unpaid by the bank upon which it is drawn, you will be responsible for any losses or expenses incurred by the Investment Options or PA ABLE, and PA ABLE may charge your Account a reasonable fee. We reserve the right to reject or cancel any contribution due to nonpayment. If the EFT contribution cannot be processed because the bank account on which it is drawn contains insufficient funds or because of incomplete or inaccurate information, PA ABLE reserves the right to suspend processing future EFT contributions. d. Recurring Contributions You may contribute to your Account through periodic automated debits from a bank checking or savings account, if the bank is a member of the Automated Clearing House (ACH), subject to certain processing restrictions. You can initiate a Recurring Contribution during enrollment by completing the appropriate section of the online or paper enrollment. Or, you may set up a Recurring Contribution after enrolling by accessing “My Account” at PAABLE.gov or by submitting an Account Financial Features Form. Your Recurring Contribution can be made on a monthly, quarterly, or custom frequency basis. Your Recurring Contribution authorization will remain in effect until PA ABLE has received notification from you of its termination and has had a reasonable amount of time to act on it. You may also elect to authorize an annual increase to your Recurring Contribution. You may terminate your Recurring Contribution at any time. For the termination to take effect, the request must be received at least five business days before the next scheduled Recurring Contribution. Recurring contribution changes are not effective until received and processed by PA ABLE. Recurring Contribution debits from your bank account will occur on the day you indicate, provided the day is a regular business day. If the day you indicate falls on a weekend or a holiday, the Recurring Contribution debit will occur on the next business day. Quarterly Recurring Contribution debits will be made on the day you indicate (or the next business day, if applicable) every three months, not on a calendar quarter basis. If you do not designate a date, your bank account will be debited on the 15th day of the applicable month. You will receive a trade date of one business day prior to the day the bank debit occurs. If you indicate a start date that is within the first four days of the month, there is a chance that your investment will be credited on the last business day of the previous month. Please note that recurring contributions with a debit date of January 1st, 2nd, 3rd, or 4th will be credited in the same year as the debit date, which might be the previous year. Please note that if the Account Owner or Authorized Individual is not the owner or a joint- owner of the bank account from which the Recurring Contribution will be taken, you must first provide a signature of an individual who is the bank account owner. Additionally, if the Account Owner or Authorized Individual is not the owner or joint-owner of the bank account from which a Recurring Contribution has been made, PA ABLE reserves the right to provide to the bank account owner(s), information related to contributions from that bank account and/or to remove the bank account information from the Account records and discontinue the Recurring Contribution upon receiving a request accompanied by a signature guarantee from any owner of the bank account. If a Recurring Contribution is returned unpaid by the bank upon which it is drawn, you will be responsible for any losses or expenses incurred by the Investment Options or PA ABLE and PA ABLE may charge your Account a reasonable fee. We reserve the right to reject or cancel any contribution due to nonpayment. If the Recurring Contribution cannot be processed because the bank account on which it is drawn contains insufficient funds or because of incomplete or inaccurate information, PA ABLE reserves the right to suspend processing future Recurring Contributions. PA ABLE reserves the right to refuse to allow an Account Owner to establish a Recurring Contribution. e. Payroll Deduction Depending on your employer, you may be able to have contributions made automatically from your paycheck. To do so, your employer must agree and be able to meet PA ABLE operational and administrative requirements. Most employers agree to process automatic paycheck contributions in the same manner that direct deposit of paychecks to employees’ bank accounts are made. If your employer permits this, you may obtain forms for setting up your payroll deduction at PAABLE.gov or by calling our Customer Service Center at 855-529-ABLE (2253). If your employer does not permit direct deposits from your paycheck to the PA ABLE, there may be alternative methods for making payroll deductions; please call Customer Service at 855-529-ABLE (2253) for assistance. Payroll deductions will be credited on the day they are received and in good order if received before the close of the NYSE. If received after the close of the NYSE or on a non-business day, payroll deductions will be credited on the next succeeding business day on which the NYSE is open. Please note that even when contributions are made by payroll deduction, they are made from your after-tax earnings. f. Rollover from another qualified ABLE program You can contribute to your Account by moving funds you have in another state’s ABLE plan or funds in another Account Owner’s ABLE Account as long as he or she is an Eligible Individual and your Sibling. If the Rollover is from another state’s program for the same Account Owner, the entire amount must be transferred and the non-PA ABLE account must be closed within 60 days of the transfer. This type of Rollover may be done only once in a 12-month period without incurring tax consequences. If the Rollover is from a Sibling’s ABLE account, less than the full amount may be transferred and there is no limit on the number of Rollovers. To initiate a Rollover from another qualified ABLE program into PA ABLE you must open a PA ABLE Account and complete the Incoming Rollover Form. Additionally, PA ABLE must receive an accurate statement issued by the distributing qualified ABLE program that reflects both the principal and earnings attributable to the Rollover amount. Until this documentation is received, the entire amount of the Rollover contribution will be treated as earnings, which is subject to taxation if you take a Non-qualified Withdrawal. Movement of funds that do not meet the conditions stated above for Rollovers may constitute a Non-qualified Withdrawal from the sending ABLE program account. That account owner’s earnings may be subject to federal and state taxation and a federal penalty. In addition, one or both account owners might be subject to adverse government benefit consequences. g. Rollovers from 529 Accounts to ABLE Accounts You can contribute to your Account by moving funds you have or a member of your family (as defined by Section 529 of the Tax Code) has in a PA 529 or other state’s 529 account. Funds transferred in this manner, in combination with any contributions made to your PA ABLE account in the then current calendar year, may not exceed the Annual Contribution Limit (See Part 2.B.2.) To initiate a Rollover from a 529 account into PA ABLE you must already have or open a PA ABLE Account and complete the Incoming Rollover Form. Additionally, PA ABLE must receive an accurate statement issued by the distributing qualified 529 program that reflects both the principal and earnings attributable to the Rollover amount. Until this documentation is received, the entire amount of the Rollover contribution will be treated as earnings, which is subject to taxation if you take a Non-qualified Withdrawal. i. Ugift® Movement of funds that do not meet the conditions stated above for Rollovers may constitute a Non-qualified Withdrawal from the sending 529 account. That account owner’s earnings may be subject to federal and state taxation and a federal penalty. In addition, you might be subject to adverse government benefit consequences. Account Owners who are taxpayers in states other than Pennsylvania should note that those states may not consider such a Rollover from a 529 account to an ABLE account as qualified for state tax purposes. Please consult with the individual state to learn more. Please note that the ability to make a Rollover from a 529 account to an ABLE Account is set to lapse on December 31, 2025. h. Transfers between PA ABLE Accounts You may transfer all or a portion of an Account Owner’s Account balance to another PA ABLE Account. At the time of the transfer, the transferee must be the same Account Owner or an Eligible Individual and a Sibling of the transferor-Account Owner. To initiate a transfer between PA ABLE Accounts, you must complete and submit the appropriate form or call the Customer Service Center at 855-529-ABLE (2253). The total Account assets held on behalf of the transferee cannot exceed the Account Balance Limit. If the Account Owners are not the same or the transferee-Account Owner is not a Sibling of the transferor-Account Owner, the transfer is considered a Non-qualified Withdrawal. Transfers into the Checking Account Option require two business days to process. These funds will be available for withdrawal on the second business day. You may invite family and friends to contribute to your Account through Ugift. You provide a unique contribution code to selected family and friends and gift givers can either contribute online through an EFT or by mailing in a gift contribution coupon with a check. Gift contributions will be processed and transferred to your Account within approximately five (5) business days. There may be potential tax consequences of gift contributions invested in your Account. You and the gift giver should consult a tax advisor for more information. Ugift is an optional service, is separate from PA ABLE, and is not affiliated with the Commonwealth of Pennsylvania or the Department. For more information, please visit www.PAABLE.gov or call 855-529-ABLE (2253). C. Choosing your Investment Options 1. Investment Options Summary PA ABLE offers investment vehicles that are similar to mutual funds and other investment products. You can choose from among six Asset-allocation Investment Options in which the funds (assets) are in different combinations (allocations) of stock funds, bond funds, and cash. The combinations range from aggressive investments (mostly stocks) to conservative investments (mostly bonds and cash). The asset allocations (combination of stocks, bonds, and cash) are static; that is, they do not change over time. Each of the Asset-allocation Investment Options invests in products from The Vanguard Group, Inc., Charles Schwab Investment Management, Inc., dba Schwab Asset Management, iShares by Blackrock Inc., and/or Sallie Mae Bank, (collectively, “Investment Firms”). The products include mutual funds, Exchange Traded Funds (ETFs), and/or a high yield savings account (the “Underlying Funds”). Although money contributed to PA ABLE will be invested in the Asset-allocation Investment Options that hold these products, including mutual funds, neither PA ABLE, nor any of the PA ABLE Program’s Asset-allocation Investment Options are mutual funds. An investment in PA ABLE is an investment in municipal fund securities that are issued and offered by PA ABLE. You will own Units of the Investment Options, not shares in the Underlying Funds. PA ABLE also offers an interest bearing Checking Account Option managed by Fifth Third Bank, National Association. See Appendix B for a full description of the Checking Account Option. There is no limit on the number of the Investment Options you can choose. However, the minimum amount you can contribute per selected Investment Option is 1% of the amount of your contribution. If you make a contribution through the PA ABLE website, it will be distributed according to the allocation on file. If you make a contribution by mail, you may designate a different allocation for that specific contribution. 2. Overview of Investment Options and Underlying Funds a. Overview of Asset-allocation Investment Option Choices The Asset-allocation Investment Options maintain a steady distribution (allocation) of funds (assets) among stocks, bonds, and cash. (See the chart below.) The percentage of assets in each of these three types of investments determines how aggressive or conservative the investment option is considered to be. In general, the greater the percentage of assets allocated to stocks, the more aggressive the investment option is. On the other hand, the greater the percentage of assets allocated to bonds and cash, the more conservative the investment option is. While, in general, aggressive options are considered to have higher risks, they also have the potential for greater investment earnings. Conservative options are considered to have lower risk, but also less potential for investment earnings. The six Asset-allocation Investment Options are named the Aggressive Option, the Moderately Aggressive Option, the Growth Option, the Moderate Option, the Moderately Conservative Option, and the Conservative Option – reflecting their degree of investment risk. Choosing whether and which Asset-allocation Investment Option to use, is a personal decision for each Account Owner. You may wish to consult a financial advisor for guidance. For a full description of the Asset-allocation Investment Options, see Part 2.C.3. b. Overview of Underlying Funds and Share Classes Each Asset-allocation Investment Option invests its assets in one or more Underlying Fund(s). Currently these funds and the share class for each are: • Vanguard Institutional Index Fund (VIIIX) • Vanguard Extended Market Index Fund (VEMPX) • Vanguard Total Bond Market Index Fund (VBMPX) • Vanguard Short-Term Bond Index Fund (VBIPX) • Vanguard Short-Term Inflation-Protected Securities Index Fund (VTSPX) • Blackrock iShares Core MSCI EAFE ETF (IEFA) • Blackrock iShares Core International Aggregate Bond ETF (IAGG) • Schwab Emerging Markets Equity ETF (SCHE) • Schwab US REIT ETF (SCHH) • Sallie Mae High Yield Savings Account Most of the Underlying Funds are index funds or index ETFs. An index fund or index ETF is composed of a combination of different stocks or bonds chosen to match or track the components of a chosen index, such as the Standard & Poor's 500 Index. These funds adhere to specific rules or standards (e.g. efficient tax management or reducing tracking errors) that stay in place no matter the state of the financial markets. Each Underlying Fund that is an index fund or index ETF reserves the right to substitute a different index for the index it currently tracks. This could happen if the current index is discontinued, if the index fund’s or index ETF’s agreement with the sponsor of its chosen index is terminated, or for any other reason determined in good faith by the Underlying Fund’s board of trustees. In any such instance, the substitute index would measure the same market segment as the current index. Other than the Sallie Mae High Yield Savings Account, additional information about the investment strategies and risks of each Underlying Fund is available in its current prospectus and statement of additional information. You can obtain a copy of the current prospectus, the statement of additional information, or the most recent semiannual or annual report of any Underlying Fund by visiting the appropriate Investment Manager’s website or phone number: • Blackrock www.ishares.com 1-800-474-2737 • Schwab www.schwabassetmanagement.com 1-877-824-5615 • Vanguard www.vanguard.com 1-866-734-4533 • Fifth Third Bank www.53.com 1-888-516-2375 Please keep in mind that you will not own shares of the Underlying Funds. You are purchasing Units in PA ABLE, which invests your money in the Underlying Funds. PA ABLE reserves the right to change, at any time, the Asset-allocation Investment Options, the asset allocations within the Options, or the Underlying Funds in which the Asset-allocation Investment Options are invested. PA ABLE, through Ascensus, monitors and rebalances the Asset-Allocation Investment Options on a quarterly basis. If the target allocation for an Asset-Allocation Investment Option is 5% greater than or less than the intended allocation, Ascensus will rebalance the Investment Option to its target allocations unless prevailing market conditions including market volatility interfere, and such rebalancing would cause adverse effects. The following table represents the asset allocation targets and asset classes for each of the Asset- allocation Investment Options as of the date of this Disclosure Statement. Underlying Investment (Ticker) Aggressive Moderately Aggressive Growth Moderate Moderately Conservative Conservative Vanguard Institutional Index Fund (VIIIX) 31.50% 26.25% 21.00% 15.75% 10.50% 3.50% Vanguard Extended Market Index Fund (VEMPX) 27.00% 22.50% 18.00% 13.50% 9.00% 3.00% iShares Core MSCI EAFE ETF (IEFA) 16.20% 13.50% 10.80% 8.10% 5.40% 1.80% Schwab Emerging Markets Equity ETF (SCHE) 6.30% 5.25% 4.20% 3.15% 2.10% 0.70% Schwab US REIT ETF (SCHH) 9.00% 7.50% 6.00% 4.50% 3.00% 1.00% Total Stocks 90.00% 75.00% 60.00% 45.00% 30.00% 10.00% Vanguard Total Bond Market Index Fund (VBMPX) 3.00% 7.50% 12.00% 16.50% 13.50% 9.00% Vanguard Short-Term Bond Index Fund (VBIPX) 2.50% 6.25% 10.00% 13.75% 11.25% 7.50% Vanguard Short-Term Inflation-Protected Securities Index Fund (VTSPX) 3.50% 8.75% 14.00% 19.25% 15.75% 10.50% iShares Core International Aggregate Bond ETF (IAGG) 1.00% 2.50% 4.00% 5.50% 4.50% 3.00% Total Bonds 10.00% 25.00% 40.00% 55.00% 45.00% 30.00% Sallie Mae High Yield Savings Account 0.00% 0.00% 0.00% 0.00% 25.00% 60.00% Total Cash 0.00% 0.00% 0.00% 0.00% 25.00% 60.00% Total Allocation 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% c. Overview of Checking Account Option The Checking Account Option invests 100% of its assets in FDIC-insured checking accounts held at Fifth Third Bank, National Association. For each Account Owner invested in the Checking Account Option, the guarantee is up to $250,000. Account Owners who invest in the Checking Account Option are able to write checks or use a debit card to pay for Qualified Expenses. Account Owners should retain documentation (for example, receipts) of all distributions for Qualified Expenses for their records. Account Owners investing in this option will receive a debit card and checks, if applicable, in their name. For those Account Owners who lack legal capacity to contract and have an Authorized Individual, the debit card will be issued in the name of the Authorized Individual and checks, if applicable, will be issued in the names of the Account Owner by the Authorized Individual. For Accounts with more than one Authorized Individual, only one Authorized Individual will be authorized to write checks or use the debit card. Please note that the debit card is not available for those Authorized Individuals that are entities. To invest in the Checking Account Option, either the Account Owner or Authorized Individual must have a government issued identification, such as a driver’s license or insurance card. You will receive a free debit card within 10 days after the Checking Account Option is funded and you have the option to order checks for a fee. As of the date of this Disclosure Statement, there is a daily withdrawal limit of $5,000 for purchases and $800 for ATM withdrawals. Please note that you may lower these limits by contacting Fifth Third Bank at 888-516-2375. Included with the debit card will be additional disclosure specific to the Fifth Third Bank debit card, including the MasterCard Zero Liability Protection Program. Please read it carefully. For Information on the fees associated with this Checking Option, see Appendix B. Please note that contributions may NOT be made directly into the checking account. All contributions intended for the Checking Account Option must be sent to PA ABLE. 3. Investment Option Descriptions The following are descriptions of each of the Investment Options. A description of each of the Underlying Funds in which the Asset-allocation Investment Options invest is in Part 2.C.4. below: a. Aggressive Option Investment Objective: The Investment Option seeks to provide long-term capital appreciation with very low income potential. Investment Strategy: The Investment Option invests in two Vanguard stock index funds, two Schwab index ETFs, one BlackRock (iShares) stock index fund, three Vanguard bond index funds and one BlackRock (iShares) bond index fund. Through its investment in these Underlying Investments, the Investment Option allocates approximately 90% of its assets to stocks and 10% of its assets to investment-grade bonds. The approximate percentages of the Investment Option’s assets allocated to each Underlying Investment are: Aggressive Option Vanguard Institutional Index Fund (VIIIX) 31.50% Vanguard Extended Market Index Fund (VEMPX) 27.00% iShares Core MSCI EAFE ETF (IEFA) 16.20% Schwab Emerging Markets Equity ETF (SCHE) 6.30% Schwab U.S. REIT ETF (SCHH) 9.00% Vanguard Total Bond Market Index Fund (VBMPX) 3.00% Vanguard Short-Term Bond Index Fund (VBIPX) 2.50% Vanguard Short-Term Inflation-Protected Securities Index Fund (VTSPX) 3.50% iShares Core International Aggregate Bond ETF (IAGG) 1.00% Sallie Mae High Yield Savings Account 0.00% Investment Risks: The Investment Option has a number of investment related risks. For a list and descriptions of the risks associated with the Vanguard funds, Blackrock funds and Schwab ETFs, see Explanation of Investment Risk Factors in Appendix C. b. Moderately Aggressive Option Investment Objective: The Investment Option seeks to provide long-term capital appreciation with low income potential. Investment Strategy: The Investment Option invests in two Vanguard stock index funds, two Schwab index ETFs, one BlackRock (iShares) stock index fund, three Vanguard bond index funds and one BlackRock (iShares) bond index fund. Through its investment in these Underlying Investments, the Investment Option allocates approximately 75% of its assets to stocks and 25% of its assets to investment-grade bonds. The approximate percentages of the Investment Option’s assets allocated to each Underlying Investment are: Moderately Aggressive Option: Vanguard Institutional Index Fund (VIIIX) 26.25% Vanguard Extended Market Index Fund (VEMPX) 22.50% iShares Core MSCI EAFE ETF (IEFA) 13.50% Schwab Emerging Markets Equity ETF (SCHE) 5.25% Schwab U.S. REIT ETF (SCHH) 7.50% Vanguard Total Bond Market Index Fund (VBMPX) 7.50% Vanguard Short-Term Bond Index Fund (VBIPX) 6.25% Vanguard Short-Term Inflation-Protected Securities Index Fund (VTSPX) 8.75% iShares Core International Aggregate Bond ETF (IAGG) 2.50% Sallie Mae High Yield Savings Account 0.00% Investment Risks: The Investment Option has a number of investment related risks. For a list and descriptions of the risks associated with the Vanguard funds, BlackRock funds and Schwab ETFs, see Explanation of Investment Risk Factors in Appendix C. c. Growth Option Investment Objective: The Investment Option seeks to provide capital appreciation and low current income. Investment Strategy: The Investment Option invests in two Vanguard stock index funds, two Schwab index ETFs, one BlackRock (iShares) stock index fund, three Vanguard bond index funds and one BlackRock (iShares) bond index fund. Through its investment in these Underlying Investments, the Investment Option allocates approximately 60% of its assets to stocks and 40% of its assets to investment-grade bonds. The approximate percentages of the Investment Option’s assets allocated to each Underlying Investment are: Growth Option Vanguard Institutional Index Fund (VIIIX) 21.00% Vanguard Extended Market Index Fund (VEMPX) 18.00% iShares Core MSCI EAFE ETF (IEFA) 10.80% Schwab Emerging Markets Equity ETF (SCHE) 4.20% Schwab U.S. REIT ETF (SCHH) 6.00% Vanguard Total Bond Market Index Fund (VBMPX) 12.00% Vanguard Short-Term Bond Index Fund (VBIPX) 10.00% Vanguard Short-Term Inflation-Protected Securities Index Fund (VTSPX) 14.00% iShares Core International Aggregate Bond ETF (IAGG) 4.00% Sallie Mae High Yield Savings Account 0.00% Investment Risks: The Investment Option has a number of investment related risks. For a list and descriptions of the risks associated with the Vanguard funds, BlackRock funds and Schwab ETFs, see Explanation of Investment Risk Factors in Appendix C. d. Moderate Option Investment Objective: The Investment Option primarily seeks to provide capital appreciation and secondarily provide moderate current income. Investment Strategy: The Investment Option invests in two Vanguard stock index funds, two Schwab index ETFs, one BlackRock (iShares) stock index fund, three Vanguard bond index funds and one BlackRock (iShares) bond index fund. Through its investment in these Underlying Investments, the Investment Option allocates approximately 45% of its assets to stocks and 55% of its assets to investment- grade bonds. The approximate percentages of the Investment Option’s assets allocated to each Underlying Investment are: Moderate Option Vanguard Institutional Index Fund (VIIIX) 15.75% Vanguard Extended Market Index Fund (VEMPX) 13.50% iShares Core MSCI EAFE ETF (IEFA) 8.10% Schwab Emerging Markets Equity ETF (SCHE) 3.15% Schwab U.S. REIT ETF (SCHH) 4.50% Vanguard Total Bond Market Index Fund (VBMPX) 16.50% Vanguard Short-Term Bond Index Fund (VBIPX) 13.75% Vanguard Short-Term Inflation-Protected Securities Index Fund (VTSPX) 19.25% iShares Core International Aggregate Bond ETF (IAGG) 5.50% Sallie Mae High Yield Savings Account 0.00% Investment Risks: The Investment Option has a number of investment related risks. For a list and descriptions of the risks associated with the Vanguard funds, BlackRock funds and Schwab ETFs, see Explanation of Investment Risk Factors in Appendix C. e. Moderately Conservative Option Investment Objective: The Investment Option seeks to provide moderate current income and low capital appreciation and moderate capital preservation. Investment Strategy: The Investment Option invests in two Vanguard stock index funds, two Schwab index ETFs, one BlackRock (iShares) stock index fund, three Vanguard bond index funds, one BlackRock (iShares) bond index fund and a Sallie Mae High Yield Savings Account. Through its investment in these Underlying Investments, the Investment Option allocates approximately 30% of its assets to stocks, 45% of its assets to investment-grade bonds and 25% to cash. The approximate percentages of the Investment Option’s assets allocated to each Underlying Investment are: Moderately Conservative Option Vanguard Institutional Index Fund (VIIIX) 10.50% Vanguard Extended Market Index Fund (VEMPX) 9.00% iShares Core MSCI EAFE ETF (IEFA) 5.40% Schwab Emerging Markets Equity ETF (SCHE) 2.10% Schwab U.S. REIT ETF (SCHH) 3.00% Vanguard Total Bond Market Index Fund (VBMPX) 13.50% Vanguard Short-Term Bond Index Fund (VBIPX) 11.25% Vanguard Short-Term Inflation-Protected Securities Index Fund (VTSPX) 15.75% iShares Core International Aggregate Bond ETF (IAGG) 4.50% Sallie Mae High Yield Savings Account 25.00% Investment Risks: The Investment Option has a number of investment related risks. For a list and descriptions of the risks associated with the Vanguard funds, BlackRock funds and Schwab funds, see Explanation of Investment Risk Factors in Appendix C and for a list and descriptions of the risk associated with Sallie Mae High Yield Savings Account – Investment Risks, Part 2.C.4.j.. f. Conservative Option Investment Objective: The Investment Option seeks to provide substantial capital preservation, limited current income and very low capital appreciation. Investment Strategy: The Investment Option invests in two Vanguard stock index funds, two Schwab index ETFs, one BlackRock (iShares) stock index fund, three Vanguard bond index funds, one BlackRock (iShares) bond index fund and a Sallie Mae High Yield Savings Account. Through its investment in these Underlying Investments, the Investment Option allocates approximately 10% of its assets to stocks, 30% of its assets to investment-grade bonds and 60% to cash. The approximate percentages of the Investment Option’s assets allocated to each Underlying Investment are: Conservative Option Vanguard Institutional Index Fund (VIIIX) 3.50% Vanguard Extended Market Index Fund (VEMPX) 3.00% iShares Core MSCI EAFE ETF (IEFA) 1.80% Schwab Emerging Markets Equity ETF (SCHE) 0.70% Schwab U.S. REIT ETF (SCHH) 1.00% Vanguard Total Bond Market Index Fund (VBMPX) 9.00% Vanguard Short-Term Bond Index Fund (VBIPX) 7.50% Vanguard Short-Term Inflation-Protected Securities Index Fund (VTSPX) 10.50% iShares Core International Aggregate Bond ETF (IAGG) 3.00% Sallie Mae High Yield Savings Account 60.00% Investment Risks: The Investment Option has a number of investment related risks. For a list and descriptions of the risks associated with the Vanguard funds, BlackRock funds and Schwab funds, see Explanation of Investment Risk Factors in Appendix C and for a list and descriptions of the risk associated with Sallie Mae High Yield Savings Account – Investment Risks, Part 2.C.4.j. g. Checking Account Option Description Investment Objective: The Investment Option seeks to provide preservation of principal. Investment Strategy: The Investment Option invests all of its assets in a checking account held at Fifth Third Bank, NA. The Checking Account Option balances are insured up to the maximum amount permitted by law. The standard insurance amount is $250,000 per depositor, for each deposit insurance ownership category. Please visit www.fdic.gov for more information about FDIC insurance coverage. The checking account is opened through and under the restrictions and oversight of PA ABLE and shall be subject to all of the requirements and limitations set forth in this Disclosure Statement, as amended. All assets invested through the Checking Account Option are, and at all times will remain, assets of PA ABLE until withdrawn. Investments in the Checking Account Option will earn varying rates of interest. Contributions will not earn interest until the hold period expires (see Part 2.B.3.) and funds are deposited to the account at Fifth Third Bank. The interest rate generally will be equivalent to short-term deposit rates. Interest will be compounded daily based on the actual number of days in a year (typically 365 days, except for 366 days in leap years) and will be credited to the Checking Account Option on a monthly basis. The interest on the Checking Account Option is expressed as an Annual Percentage Yield (“APY”). The APY on the Checking Account Option will be reviewed by Fifth Third Bank on a periodic basis and may be recalculated as needed at any time. To see the current Checking Account Option APY please go to www.53.com or call toll-free 888-516-2375. The Checking Account Option may not be established if it is determined that distributions from such Account are subject to restrictions by court order or otherwise. Investment Risks: To the extent that FDIC insurance applies, the Checking Account Option is primarily subject to the risk that the return on the underlying Checking Account will vary because of changing interest rates and that the return on the Checking Account will decline because of falling interest rates. See, Appendix B – Fifth Third Terms and Conditions, for additional terms and conditions applicable to the Checking Account Option. FDIC Insurance: Subject to the application of Fifth Third Bank (for the Checking Account Option) and FDIC rules and regulations to each Account Owner, funds in the Checking Account Option will retain their value as a result of FDIC insurance. FDIC insurance is provided for the Checking Account Option which invests in a checking account. Contributions to and earnings on the investments in the Checking Account Option are insured by the FDIC up to the maximum limit established by federal law, which currently is $250,000 per depositor. The amount of FDIC insurance provided to an Account Owner investing in the Checking Account Option is based on the total of: (1) the value of an Account Owner’s investment in the Checking Account Option, and (2) the value of all other deposits held by the Account Owner at Fifth Third Bank, as determined in accordance with Fifth Third Bank and FDIC rules and regulations. Each Account Owner should determine whether the amount of FDIC insurance available to the Account Owner is sufficient to cover the total of the Account Owner’s investment in the Checking Account Option plus the Account Owner’s other deposits at Fifth Third Bank. For the Checking Account Option, PA ABLE is not responsible for determining the amount of FDIC insurance provided to an Account Owner. 4. Underlying Funds Descriptions The following are descriptions of each of the Investment Options. A description of each of the Underlying Funds in which the Asset-allocation Investment Options invest is in Part 2.C.4. below: a. Vanguard Institutional Index Fund Investment Objective: The Fund seeks to track the performance of a benchmark index that measures the investment return of large-capitalization stocks. Investment Strategy: The Fund employs an indexing investment approach designed to track the performance of the S&P 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. The Fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. Investment Risks: The Fund is subject to Stock Market Risk and Investment Style Risk. These risks are discussed under Vanguard Investment Risks in Appendix C. b. Vanguard Extended Market Index Fund Investment Objective: The Fund seeks to track the performance of a benchmark index that measures the investment return of small- and mid-capitalization stocks. Investment Strategy: The Fund employs an indexing investment approach designed to track the performance of the Standard & Poor’s Completion Index, a broadly diversified index of stocks of small and mid-size U.S. companies. The S&P Completion Index contains all of the U.S. common stocks regularly traded on the NYSE, CBOE, and the Nasdaq over-the-counter market, except those stocks included in the S&P 500 Index. The Fund invests by sampling the index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the full index in terms of key characteristics. These characteristics include industry weightings and market capitalization, as well as certain financial measures, such as price/earnings ratio and dividend yield. Investment Risks: The Fund is subject to Stock Market Risk and Investment Style Risk. The Fund is also subject to a low level of Index Sampling Risk. These risks are discussed under Vanguard Investment Risks in Appendix C. c. Vanguard Total Bond Market Index Fund Investment Objective: The Fund seeks to track the performance of a broad, market-weighted bond index. Investment Strategy: The Fund employs an indexing investment approach designed to track the performance of the Bloomberg U.S. Aggregate Float Adjusted Index. This index measures the performance of a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States-including government, corporate, and international dollar- denominated bonds, as well as mortgage-backed and asset-backed securities-all with maturities of more than one (1) year. The Fund invests by sampling the index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the full index in terms of key risk factors and other characteristics. All of the Fund’s investments will be selected through the sampling process, and at least 80% of the Fund’s assets will be invested in bonds held in the index. The Fund maintains a dollar-weighted average maturity consistent with that of the index. Investment Risks: The Fund is subject to moderate levels of Interest Rate Risk, Prepayment Risk, Extension Risk, and low levels of Call Risk, Index Sampling Risk and Credit Risk. The Fund is also subject to Income Risk and Liquidity Risk. These risks are discussed under Vanguard Investment Risks in Appendix C. d. Vanguard Short-Term Bond Index Fund Investment Objective: The Fund seeks to track the performance of a market-weighted bond index with a short- term dollar- weighted average maturity. Investment Strategy: The Fund employs an indexing investment approach designed to track the performance of the Bloomberg U.S. 1-5 Year Government/Credit Float Adjusted Index. This index includes all medium and larger issues of U.S. government, investment-grade corporate, and investment-grade international dollar-denominated bonds that have maturities between 1 and 5 years and are publicly issued. The Fund invests by sampling the index, meaning that it holds a range of securities that, in the aggregate, approximates the full index in terms of key risk factors and other characteristics. All of the Fund’s investments will be selected through the sampling process, and at least 80% of the Fund’s assets will be invested in bonds held in the index. The Fund maintains a dollar-weighted average maturity consistent with that of the index. Investment Risks: The Fund is subject to a high level of Income Risk and low levels of Interest Rate Risk, Credit Risk and Index Sampling Risk. The Fund is also subject to Liquidity Risk. These risks are discussed under Vanguard Investment Risks in Appendix C. e. Vanguard Short-Term Inflation-Protected Securities Index Fund Investment Objective: The Fund seeks to track the performance of a benchmark index that measures the investment return of inflation protected public obligations of the U.S. Treasury with remaining maturities of less than 5 years. Investment Strategy: The Fund employs an indexing investment approach designed to track the performance of the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. The index is a market- capitalization-weighted index that includes all inflation-protected public obligations issued by the U.S. Treasury with remaining maturities of less than 5 years. The Fund attempts to replicate the target index by investing all, or substantially all, of its assets in the securities that make up the index, holding each security in approximately the same proportion as its weighting in the index. The Fund maintains a dollar-weighted average maturity consistent with that of the index. Investment Risks: The Fund is subject to a high level of Income Fluctuation Risk and a low level of Real Interest Rate Risk. These risks are discussed under Vanguard Investment Risks in Appendix C. f. Schwab Emerging Markets Equity ETF Investment Objective: The Fund’s goal is to track as closely as possible, before fees and expenses, the total return of the FTSE Emerging Index. Investment Strategy: To pursue its goal, the Fund generally invests in stocks that are included in the FTSE Emerging Index. The index is comprised of large and mid-capitalization companies in emerging market countries, as defined by the index provider. The index defines the large and mid-capitalization universe as approximately the top 90% of the eligible universe. It is the Fund’s policy that under normal circumstances it will invest at least 90% of its net assets (including, for this purpose, any borrowings for investment purposes) in these stocks, including depositary receipts representing securities of the index; such depositary receipts may be in the form of American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) and European Depositary Receipts (EDRs). The Fund will notify its shareholders at least 60 days before changing this policy. The Fund may sell securities that are represented in the index in anticipation of their removal from the index, or buy securities that are not yet represented in the index in anticipation of their addition to the index. Under normal circumstances, the Fund may invest up to 10% of its net assets in securities not included in the index. The principal types of these investments include those that the investment adviser believes will help the Fund track the index, such as investments in (a) securities that are not represented in the index but the investment adviser anticipates will be added to the index or as necessary to reflect various corporate actions (such as mergers and spin-offs); (b) other investment companies; and (c) derivatives, principally futures contracts. The Fund may use futures contracts and other derivatives primarily to seek returns on the Fund’s otherwise uninvested cash assets to help it better track the index. The Fund may also invest in cash and cash equivalents, including money market funds, and may lend its securities to minimize the difference in performance that naturally exists between an index fund and its corresponding index. The Fund does not hedge its exposure to foreign currencies. Because it may not be possible or practicable to purchase all of the stocks in the index, the investment adviser seeks to track the total return of the index by using sampling techniques. Sampling techniques involve investing in a limited number of index securities which, when taken together, are expected to perform similarly to the index as a whole. These techniques are based on a variety of factors, including performance attributes, tax considerations, country weightings, capitalization, industry factors, risk factors and other characteristics. The Fund generally expects that its portfolio will hold less than the total number of securities in the index, but reserves the right to hold as many securities as it believes necessary to achieve the Fund’s investment objective. The Fund will concentrate its investments (i.e., hold 25% or more of its total assets) in a particular industry, group of industries or sector to approximately the same extent that the index is so concentrated. The investment adviser seeks to achieve, over time, a correlation between the Fund’s performance and that of the index, before fees and expenses, of 95% or better. However, there can be no guarantee that the Fund will achieve a high degree of correlation with the index. A number of factors may affect the Fund’s ability to achieve a high correlation with the index, including the degree to which the Fund utilizes a sampling technique (or otherwise gives a different weighting to a security than the index does). The correlation between the performance of the Fund and the index may also diverge due to transaction costs, asset valuations, corporate actions (such as mergers and spin-offs), timing variances, and differences between the Fund’s portfolio and the index resulting from legal restrictions (such as diversification requirements) that apply to the Fund but not to the index. Investment Risks: The Fund is subject to Market Risk, Investment Style Risk, Equity Risk, Market Capitalization Risk, Large-Cap Company Risk, Mid-Cap Company Risk, Foreign Investment Risk, Emerging Markets Risk, Sampling Index Tracking Risk, Tracking Error Risk, Derivatives Risk, Liquidity Risk, Securities Lending Risk, Concentration Risk, Market Trading Risk and Shares of the Fund May Trade at Prices Other Than NAV. These risks are discussed under Schwab Investment Risks in Appendix C. g. Schwab US REIT ETF Investment Objective: The Fund’s goal is to track as closely as possible, before fees and expenses, the total return of an index composed of U.S. real estate investment trusts classified as equities. Investment Strategy: To pursue its goal, the Fund generally invests in securities that are included in the Dow Jones Equity All REIT Capped Index. The index is a float-adjusted market capitalization weighted index that is subject to capping constraints at each quarterly rebalancing. The index generally includes all publicly traded equity real estate investment trusts (REITs) with a minimum float-adjusted market capitalization of $200 million and a three-month median daily value traded of at least $5 million. A security becomes ineligible if its float-adjusted market capitalization falls below $100 million for two consecutive quarters. The index excludes mortgage REITs, defined as REITs that lend money directly to real estate owners and/or operators or indirectly through the purchase of mortgages or mortgage- backed securities, and hybrid REITs, defined as REITs that participate both in equity and mortgage investing. The index uses a capping methodology to limit the weight of the securities of any single issuer (as determined by the index provider) to a maximum of 10% of the index. Additionally, the capping methodology limits the sum of the weights of the securities of all issuers that individually constitute more than 4.5% of the weight of the index to a maximum of 22.5% of the weight of the index in the aggregate. In order to implement this capping methodology, the index constrains at quarterly rebalance: (i) the weight of any single issuer to a maximum of 10%, and (ii) the aggregate weight of all issuers that individually exceed 4.5% of the index weight to a maximum of 22.5%. Between scheduled quarterly index reviews, the index is reviewed daily to assess whether the sum of all individual constituents with more than 5% of the weight of the index exceeds more than 25% of the weight of the index in the aggregate. When daily capping is necessary, the changes are announced after the close of the business day on which the daily weight caps are exceeded, with the reference date after the close of that same business day, and changes are effective after the close of the next trading day. It is the Fund’s policy that under normal circumstances it will invest at least 90% of its net assets (including, for this purpose, any borrowings for investment purposes) in securities included in the index. The Fund will notify its shareholders at least 60 days before changing this policy. The Fund will generally seek to replicate the performance of the index by giving the same weight to a given security as the index does. However, when the investment adviser believes it is in the best interest of the Fund, such as to avoid purchasing odd-lots (i.e., purchasing less than the usual number of shares traded for a security), for tax considerations, or to address liquidity considerations with respect to a security, the investment adviser may cause the Fund’s weighting of a security to be more or less than the index’s weighting of the security. The Fund may sell securities that are represented in the index in anticipation of their removal from the index, or buy securities that are not yet represented in the index in anticipation of their addition to the index. Under normal circumstances, the Fund may invest up to 10% of its net assets in securities not included in its index. The principal types of these investments include those that the investment adviser believes will help the Fund track the index, such as investments in (a) securities that are not represented in the index but the investment adviser anticipates will be added to the index; (b) investment companies; and (c) derivatives, principally futures contracts. The Fund may use futures contracts and other derivatives primarily to seek returns on the Fund’s otherwise uninvested cash assets to help it better track the index. The Fund may also invest in cash, cash equivalents and money market funds, and may lend its securities to minimize the difference in performance that naturally exists between an index fund and its corresponding index. Due to the composition of the index, the Fund will concentrate its investments (i.e., hold 25% or more of its total assets) in real estate companies and companies related to the real estate industry. The Fund may also invest in a particular industry, group of industries or sector to approximately the same extent that its index is so concentrated. The investment adviser seeks to achieve, over time, a correlation between the Fund’s performance and that of its index, before fees and expenses, of 95% or better. However, there can be no guarantee that the Fund will achieve a high degree of correlation with the index. A number of factors may affect the Fund’s ability to achieve a high correlation with its index, including the degree to which the Fund utilizes a sampling technique. The correlation between the performance of the Fund and its index may also diverge due to transaction costs, asset valuations, timing variances, and differences between the Fund’s portfolio and the index resulting from legal restrictions (such as diversification requirements) that apply to the Fund but not to the index. Investment Risks: The Fund is subject to Market Risk, Investment Style Risk, Equity Risk, Market Capitalization Risk, Large-Cap Company Risk, Mid-Cap Company Risk, Small-Cap Company Risk, Real Estate Investment Risk, REITs Risk, Tracking Error Risk, Derivatives Risk, Concentration Risk, Liquidity Risk, Securities Lending Risk, Market Trading Risk, and Shares of the Fund May Trade at Prices Other Than NAV. These risks are discussed under Schwab Investment Risks in Appendix C. h. iShares Core MSCI EAFE ETF Investment Objective: The Fund seeks to track the investment results of an index composed of large-, mid- and small- capitalization developed market equities, excluding the U.S. and Canada. Investment Strategy: The Fund seeks to track the investment results of the MSCI EAFE IMI Index (the “Underlying Index”), which has been developed by MSCI Inc. (the “Index Provider” or “MSCI”). The Underlying Index is a free float-adjusted, market capitalization-weighted index designed to measure large-, mid- and small- capitalization equity market performance and includes stocks from Europe, Australasia and the Far East. Investment Risks: The Fund is subject to Asset Class Risk, Authorized Participant Concentration Risk, Concentration Risk, Currency Risk, Cybersecurity Risk, Equity Securities Risk, Financials Sector Risk, Geographic Risk, Index- Related Risk, Industrials Sector Risk, Infectious Illness Risk, Issuer Risk, Large-Capitalization Companies Risk, Large Shareholder and Large-Scale Redemption Risk, Market Risk, Market Trading Risk, National Closed Market Trading Risk, Non-U.S. Securities Risk, Operational Risk, Passive Investment Risk, Risk of Investing in Developed Countries, Risk of Investing in Japan, Securities Lending Risk, Tracking Error Risk and Valuation Risk. These risks are discussed under BlackRock Investment Risks in Appendix C. i. iShares Core International Aggregate Bond ETF Investment Objective: The Fund seeks to track the investment results of an index composed of global non-U.S. dollar- denominated investment-grade bonds that mitigates exposure to fluctuations between the value of the component currencies and the U.S. dollar. Investment Strategy: The Fund seeks to track the investment results of the Bloomberg Global Aggregate ex USD 10% Issuer Capped (Hedged) Index (the “Underlying Index”), which measures the performance of the global investment-grade (as determined by Bloomberg Index Services Limited (the “Index Provider” or “Bloomberg”)) bond market. The Underlying Index includes investment-grade fixed-rate sovereign and government-related debt, corporate and securitized bonds from both developed and emerging market issuers. Securities included in the Underlying Index are issued in currencies other than the U.S. dollar, must have maturities of at least one year and are required to meet minimum outstanding issue size criteria. The Underlying Index is market capitalization-weighted with a cap on each issuer of 10%. Debt that is publicly issued in the global and regional markets is included in the Underlying Index. Certain types of securities, such as USD-denominated bonds, contingent capital securities, inflation- linked bonds, floating-rate issues, fixed-rate perpetuals, retail bonds, structured notes, pass-through certificates, private placements (other than those offered pursuant to Rule 144A or Regulation S promulgated under the Securities Act of 1933, as amended (the “1933 Act”)) and securities where reliable pricing is unavailable are excluded from the Underlying Index. The securities in the Underlying Index are updated on the last business day of each month, and the currency risk of the securities in the Underlying Index are hedged to the U.S. dollar on a monthly basis. The components of the Underlying Index are likely to change over time. Investment Risks: The Fund is subject to Asset Class Risk, Authorized Participant Concentration Risk, Call Risk, Concentration Risk, Credit Risk, Currency Hedging Risk, Currency Risk, Custody Risk, Cybersecurity Risk, Derivatives Risk, Extension Risk, Geographic Risk, Illiquid Investments Risk, Income Risk, Index- Related Risk, Infectious Illness Risk, Interest Rate Risk, Issuer Risk, Large Shareholder and Large-Scale Redemption Risk, Management Risk, Market Risk, Market Trading Risk, Non-Diversification Risk, Operational Risk, Passive Investment Risk, Privatization Risk, Reliance on Trading Partners Risk, Risk of Investing in China, Risk of Investing in the China Bond Market, Risk of Investing in Developed Countries, Risk of Investing in Emerging Markets, Risk of Investing in Russia, Risk of Investing in Saudi Arabia, Sovereign and Quasi- Sovereign Obligations Risk, Structural Risk, Tax Risk, Tracking Error Risk and Valuation Risk. These risks are discussed under BlackRock Investment Risks in Appendix C. j. Sallie Mae High Yield Savings Account Investment Objective: The Underlying Investment seeks income consistent with the preservation of principal. Investment Strategy: The assets in the Underlying Investment are held in an omnibus savings account, which is held in trust by PA ABLE at Sallie Mae Bank. Investments in the savings account earn a variable rate of interest. Interest will be compounded daily on a 365/365 basis (366/366 in leap years) and will be credited on a monthly basis. The total amount of interest paid on the account is expressed as an Annual Percentage Yield (“APY”). The interest rate and APY rate are established at the discretion of Sallie Mae Bank and are subject to change at any time without notice. The APY rates assume that interest earned in the account remains on deposit. A withdrawal from the account will reduce earnings. No Guarantees: There are no guarantees for the Underlying Investment. Neither the Investment Option’s investment into the savings account nor any investment return earned on such investment is guaranteed by the Plan Administrators. In addition, the Underlying Investment does not provide a guarantee of any level of performance or return. Investment Risks: The Underlying Investment is primarily subject to the risk that the return on the savings account will vary because of changing interest rates and that the return on the savings account will decline because of falling interest rates. 5. Additional Investment Information a. How Your Units Are Valued The Unit Value of each Asset-allocation Investment Option is normally calculated as of the close of the NYSE each day. If securities held by an Underlying Fund in your Asset–allocation Investment Option are traded in other markets on days when the NYSE is closed, that Asset- allocation Investment Option’s value may fluctuate on days when you do not have access to purchase or redeem Units. If events that are expected to materially affect the value of securities traded in other markets occur between the close of those markets and the close of business on the NYSE, those securities may be valued at their fair value. The Unit Value of an Asset-allocation Investment Option is determined by dividing the dollar value of that Asset-allocation Investment Option’s net assets (i.e., total Asset-allocation Investment Option assets minus total Asset- allocation Investment Option liabilities) by the number of Units of the Asset-allocation Investment Option outstanding. When you purchase, redeem, or exchange Units of an Asset-allocation Investment Option, you will do so at the Unit Value on the trade date. Your trade date will be determined as follows: • If PA ABLE receives your transaction request (whether to contribute money, withdraw money, or exchange money between Asset-allocation Investment Options) in good order on a business day prior to the close of trading on the NYSE, your transaction will receive that day’s trade date. • If PA ABLE receives your transaction request in good order on a business day after the close of trading on the NYSE or at any time on a non-business day, your transaction will receive the next succeeding business day’s trade date on which the NYSE is open. b. Treatment of Dividends and Capital Gains Some Underlying Investments may distribute dividends and capital gains. Any dividends and capital gains will be reinvested into the Asset-allocation Investment Options containing the Underlying Funds and will be reflected as increases or decreases in the Asset-allocation Investment Option’s Unit Value. c. Requesting Additional Information about certain Underlying Investments Additional information about the investment strategies and risks of each Underlying Investment is available in its current prospectus and Statement of Additional Information (SAI). You can request a copy of the current prospectus, the SAI, or the most recent semiannual or annual report of any Fund by visiting the Investment Firms’ websites or calling the numbers referenced above (see Part 2.C.2.a.) d. Individual Investment Option Performance The following table shows the investment performance of the Investment Options over various time periods, as indicated. Except for the Checking Account Option, which is not subject to an asset-based fee, the performance data is net of the annual asset-based fee; that is, the returns have already been reduced by the amount of the annual asset-based fee for each Investment Option, but does not include other charges associated with an investment such as the Annual Account Maintenance Fee. The performance data shown represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors’ Investment Option Units, when sold, may be worth more or less than their original cost. For performance data current to the most recent month-end, which may be higher or lower than that cited, visit us at paable.gov. The performance of the Investment Options will differ from the performance of the Underlying Funds. Because the Investment Options have higher expenses than the Underlying Funds, over comparable periods of time, all other things being equal, an Investment Option would have lower performance than its comparable Underlying Fund. (Of course, the Underlying Funds do not offer the same tax advantages as the Investment Options.) Performance differences also are caused by differences in the trade dates of Investment Option purchases. When you invest money in an Investment Option, you will receive Investment Option Units as of the trade date noted in Part 2.C.5.a. The Investment Option will use your money to purchase shares of an Underlying Fund. However, the trade date for the Investment Option purchase of the Underlying Fund shares typically will be one business day after the trade date for your purchase of Investment Option Units. Contributions to the Checking Account Option will not earn interest until the hold period expires and funds are posted. Investments in the Checking Account Option will earn varying rates of interest expressed as an annual percentage yield. Depending on the amount of cash flow into or out of the Investment Option and whether the Underlying Fund is going up or down in value, this timing difference will cause the Investment Option’s performance either to trail or exceed the Underlying Fund’s performance. See the Current Interest Rates for the ABLE Checking Account Option section of the Fifth Third Terms and Conditions for annual percentage yield information for the Checking Account Option.Investment Performance1 as of September 30, 2022 1 The returns are net of asset-based fees. However, the Annual Account Maintenance Fee of $14.75 charged to each Account is not reflected in the performance data. The fee is discounted to $8.50 if you elect electronic delivery notification for statements, confirmations and disclosure documents. Portfolio1 Year3 Year5 YearSince InceptionInception DateAggressive Option-21.04%2.87%4.14%5.68%12/15/2016Moderately Aggressive Option-18.95%2.47%3.76%5.05%12/15/2016Growth Option-16.89%1.98%3.29%4.34%12/15/2016Moderate Option-14.78%1.42%2.75%3.61%12/15/2016Moderately Conservative Option-10.59%1.13%2.22%2.79%12/15/2016Conservative Option-4.60%0.65%1.43%1.63%12/15/2016 D. Fees and Expenses The Department, in its sole discretion, will establish, and may change at any time, the fees and expenses it deems appropriate for PA ABLE. In the future, PA ABLE’s fees and expenses could be higher or lower than those discussed in this Disclosure Statement. 1. Asset-allocation Investment Options Asset-based Fees PA ABLE charges a total annual asset-based fee for each Asset-allocation Investment Option, which ranges from 0.30% to 0.33%, which varies because of the different expenses of the Underlying Funds (the “Underlying Fund Expenses”). The Underlying Fund Expenses are received by the Investment Firms and include the expense ratio of the mutual funds used in each Asset-allocation Investment Option. Expenses for multiple-fund Asset-allocation Investment Options represent a weighted average of the expenses of the Underlying Fund Expenses. The Underlying Fund Expenses included in the chart below reflect expenses as of the date of this Disclosure Statement, but may change in the future. If a change in an Underlying Fund Expense occurs, a change in the expense ratio of the Asset-allocation Investment Option might also change, depending on factors that include, but are not limited to, the amount of the change and the portion of the Underlying Fund contained in the Asset-allocation Investment Options. In addition to the Underlying Fund Expenses, the total annual asset-based fees of an Asset- allocation Investment Option includes an Operational Support Fee. The Operational Support Fee of 0.28% is allocated between Ascensus and the Investment Firms, and covers additional administrative and operational costs. The Operational Support Fee may be lowered without prior notification. The total annual asset-based fee is charged daily against the assets of each Option at an annualized rate approximately equal to the total annual asset-based fee. The chart below provides the total annual asset-based fee for each Asset-allocation Investment Option. The chart also provides you a way to compare the cost of investing in the Asset- allocation Investment Options over different time periods. It illustrates the hypothetical expenses that you would incur over various periods if you invest $10,000 in an Option, including the total annual asset-based fee, which differs depending on if you have established electronic delivery of statements, confirms, and disclosure documents, and the Annual Account Maintenance Fee. This example assumes that each Option provides a return of 5% a year and that the Option’s total annual asset-based fee remains the same, excluding the difference in fees resulting from paper and electronic delivery of statements, confirms, and disclosure documents. The results apply whether or not the investment is redeemed at the end of the period, but they do not take into consideration any withdrawals that are Non-qualified or otherwise subject to state or federal income taxes, or any penalties. Additional Account Owner ExpensesInvestment OptionEstimated Underlying Fund Expense2Operational Support FeeTotal Annual Asset-Based Fees3Annual Account Maintenance Fee41 Year3 Year5 Year10 Year1 Year3 Year5 Year10 YearAggressive Option0.05%0.28%0.33%$59 $92 $281 $476 $993 $67 $206 $352 $747 Moderately Aggressive Option0.04%0.28%0.32%$59 $92 $281 $475 $992 $67 $206 $351 $746 Growth Option0.04%0.28%0.32%$59 $92 $281 $475 $991 $67 $206 $351 $745 Moderate Option0.04%0.28%0.32%$59 $92 $280 $474 $989 $67 $205 $350 $744 Moderately Conservative Option0.03%0.28%0.31%$59 $91 $277 $468 $976 $66 $202 $344 $730 Conservative Option0.02%0.28%0.30%$59 $89 $272 $460 $957 $64 $197 $336 $711 Checking Account Option5N/AN/AN/A$59 $83 $249 $415 $830 $34 $102 $170 $340 12345FEE STRUCTURE TABLE(as of July 2022) Annual Asset-Based Fees1(Assumes No Discount for Electronic Delivery of Statements and Confirms) (Assumes Discount for Electronic Delivery of Statements and Confirms) HYPOTHETICAL $10,000 INVESTMENT COST CHARTExpressed as an annual percentage of the average daily net assets of each Investment Option. For each Investment Option, other than the Checking Account Option, the Estimated Underlying Investment Expenses in this column is derived from the expense ratio reported in each Underlying Investment’s most recent prospectus as of July 29, 2022 and is based on a weighted average of the expenses of each Underlying Investment’s expense ratio, in accordance with the Investment Option’s asset allocation among its Underlying Investments. Each Investment Option indirectly bears the expenses of the Underlying Investments; so when fees are deducted from an Underlying Investment’s assets, the value of the Underlying Investment’s shares is reduced. Actual Underlying Investment expenses may vary. The Total Annual Asset-Based Fee is assessed against assets over the course of the year. It includes the Underlying Investment Expenses plus the Program Management Fee, but does not include the Annual Account Maintenance Fee. Please refer to the Illustration of Investment Costs, below, for the total assumed cost for a $10,000 investment over 1-, 3-, 5-, and 10-year periods. The Annual Account Maintenance Fee ($14.75 taken quarterly) will be reduced to $34 if you sign up for electronic delivery of statements and confirmations ($8.50 taken quarterly). An investment in the Checking Account Option will be assessed a monthly service charge of $2.00 as set forth in the Fifth Third Terms and Conditions in the Plan Disclosure Statement. This fee is waived if the Checking Account Option has an average daily balance over $250 or if enrolled in electronic statement delivery. 2. Checking Account Option Fees There is a $2.00 per month fee for the Checking Account Option. However, the fee is waived if you agree to receive checking account statements electronically by logging into your checking account at 53.com/ABLE or if you have an average monthly balance of $250 or more. Please note that even if you have selected electronic delivery for your Asset-allocation Investment Options, you will not receive the fee waiver for the Checking Account Option if you do not separately choose electronic delivery on the Fifth Third website (or have an average monthly balance of $250 or more). Additionally, there are customary banking fees such as non-network ATM fees, check purchase fees, and fees for receiving copies of canceled checks. For details of all the fees see Appendix B. 3. Account Maintenance Fee PA ABLE charges an Annual Account Maintenance Fee of $59 ($14.75 taken quarterly) to all funded Accounts that do not have a stop mail hold (see Part 2.A.2.b.) of which $54 will go to Ascensus and $5 will go to PA ABLE. This fee will be reduced to $34 ($8.50 taken quarterly), with $29 going to Ascensus and $5 to the Department, for those Accounts that have elected electronic delivery for all categories of items listed on the “Delivery Preferences” page of the account access section of PAABLE.gov except the “Tax Forms” category (these include quarterly statements and, PA ABLE Disclosure Statement updates, and transaction and profile change confirmations). The Account Maintenance Fee will be deducted from the account quarterly on the 20th day (if the 20th day is not a business day, the next business day) of the first month of each calendar quarter (January 20, April 20, July 20, October 20) and will be taken proportionally from each portfolio in the Account. The fee will not be deducted from those accounts that have a zero balance as of the 20th day of the quarter. If the amount remaining in an Account is less than the fee amount, the fee will be assessed against the remaining funds. 4. Other Charges PA ABLE reserves the right to assess the following charges on Asset-allocation Investment Option transactions: Contribution checks returned for insufficient funds $25 Contributions made by ACH which fail $25 Outgoing Wire $25 Overnight Delivery $25 E. Making Withdrawals 1. In General Only you, as the Account Owner (if you are an adult with the capacity to contract) or your Authorized Individual may direct withdrawals from your Account. Withdrawals may be made at any time for any reason, but there may be tax and benefit consequences for withdrawals not used for Qualified Disability Expenses. Withdrawal requests that do not specify the Investment Options from which the Withdrawal should be taken and are received in good order before the close of the NYSE on any day the NYSE is open for business are processed that day based on the Unit Values of your Asset- allocation Investment Options in your Account for that day and the cash value of your Checking Account Option. Requests received after the close of the NYSE are processed the next business day using the Unit Values on that day. Withdrawal requests from specific Investment Options received in good order before the close of the NYSE on any day the NYSE is open for business are processed that day based on the Unit Values of the selected Asset-allocation Investment Option(s) in your Account for that day and/or the cash value of your Checking Account Option, if applicable. Requests received after the close of the NYSE are processed the next business day using the Unit Values on that day. Please generally allow up to 10 business days for the proceeds to reach the payee. PA ABLE generally processes withdrawals within three business days of accepting the request. During periods of market volatility and at year-end, withdrawal requests may take up to five business days to process. Withdrawals of contributions made by check, Recurring Contribution, or Electronic Fund Transfers (EFTs) will not be available for withdrawal for five business days from the day the contribution is received, if received prior to the close of the New York Stock Exchange (six business days if the contribution is received after the close of the New York Stock Exchange). New contributions into the Checking Account Option will not be available for withdrawal for six business days from the day the contribution is received, if received prior to the close of the New York Stock Exchange (seven business days if the contribution is received after the close of the New York Stock Exchange). Please note that PA ABLE has not established a minimum withdrawal amount but reserves the right to do so. 2. Recontribution of Withdrawals With the exception of investments in the Checking Account Option, withdrawals cannot be recontributed back into the Account, even if you placed the withdrawal by mistake. If you attempt to recontribute money that you previously withdrew, the recontribution will be treated as a new and separate contribution. The withdrawal may also be treated as a Non-Qualified Withdrawal, which could subject the Account Owner to tax consequences and have adverse effects on the Account Owner’s eligibility for means-tested benefits. For investments in the Checking Account Option, PA ABLE currently processes refunds or adjustments for purchases made with the debit card automatically and does not treat these adjustments as contributions to the Account. Currently, neither federal law nor federal regulations explicitly address the treatment of refunds and adjustments to the Checking Account Option. Should the IRS issue future guidance that requires some of any of these adjustments to be considered contributions to the Account, any such adjustments may subject the Account Owner to tax consequences and adverse effects on the Account Owner’s eligibility for means- tested benefits PA ABLE does not consider adjustments resulting from its error or an error by any of its vendors or fraudulent Account activity to be contributions. PA ABLE, in its sole discretion, will determine if an entered withdrawal request or amount of the withdrawal is due to a mistake by PA ABLE or its vendors or to circumstances beyond the control of the Account Owner or Authorized Individual and may require documentation from the Account Owner or Authorized Individual in support of a request to rescind or void a withdrawal or portion of a withdrawal. An Account Owner or Authorized Individual may re-contribute a withdrawal or portion of a withdrawal that cannot be rescinded or voided; however, it will be treated as a new contribution as of the date the request to recontribute is received. Any withdrawal that is recontributed, including a withdrawal that was rescinded or voided, might be considered a Non-qualified Withdrawal subject to income tax and an additional federal tax of 10% (see Part 2.E.4.e.) unless the re-contribution qualifies as a Rollover from the Account (see Part 2.E.4.c.). Such a withdrawal may also have adverse effects on the Account Owner’s eligibility for means-tested benefits (see Part 3). 3. Withdrawal Payment Methods You may designate one of several payment methods. Withdrawals may be sent electronically (by ACH) using the Account Owner’s bank information on the Account record, by check to the Account Owner or Authorized Individual at the mailing address on the Account record, or by check to a third party designated by the Account Owner or Authorized Individual. Please note that electronic (ACH) withdrawals will be held for 15 calendar days after any addition to or change of banking information, and checks to the Account Owner or Authorized Individual will be held for 10 business days after any change in the mailing address of record. Withdrawals from the Checking Account Option may also be made by using your debit card, taking a withdrawal at an ATM or by writing a check. If you have more than one Authorized Individual on the Account, only one will be authorized to write checks and use the debit card. To order checks, your Checking Account Option balance must be at least $25. However, once you have checks, if your Checking Account Option balance falls below $25, PA ABLE will still process checks that you have written as long as a sufficient balance is available to cover the amount of the check when presented. 4. Systematic Withdrawal Program You may also establish a Systematic Withdrawal Program, which are periodic, pre-scheduled Withdrawals from any of your Asset-allocation or Checking Account Options. You can have up to two Systematic Withdrawal Programs on your Account. If the balance in your Investment Option is less than the amount specified on your Systematic Withdrawal Program, the Systematic Withdrawal Program instructions will be stopped. Systematic Withdrawal Programs are subject to the processing times and hold periods specified above. (See Part 2.E.1.) 5. Types of Withdrawals There are several different types of withdrawals, which are determined by the purpose of the withdrawal, each may have different tax and benefit consequences. These are as follows: • Qualified Withdrawals: Withdrawals taken to pay for Qualified Disability Expenses. • Rollovers: Withdrawals that are deposited into: o An account in another qualified ABLE program of which you are the Account Owner (provided that you have not made a similar Rollover to a qualified ABLE program within the previous 12 months), or o An account in another qualified ABLE program of which your Sibling who is an Eligible Individual is the Account Owner. There are two types of Rollovers. Direct Rollovers are ones in which you request PA ABLE to transfer your funds directly to the other ABLE program. Indirect Rollovers are ones in which you request PA ABLE to pay the funds to you and you contribute the withdrawn amount in the other state’s ABLE program. Please note that if the Rollover (whether Direct or Indirect) is to an account of which you are the Account Owner, you must roll over the entire amount and close your PA ABLE Account within 60 days of the transfer of funds. • Transfers between PA ABLE Accounts: Withdrawals taken from one PA ABLE Account and deposited into another PA ABLE Account for a Sibling, who is also an Eligible Individual of the Account Owner of the transferring Account, withdrawals taken from the PA ABLE Account whose Account Owner is deceased and deposited into the Successor Owner’s PA ABLE Account, or withdrawals made as a result of an Involuntary Termination and transferred to a new PA ABLE Account for the same Account Owner, if permitted. • Non-qualified Withdrawals: Withdrawals taken for any purpose or reason that are not Qualified Withdrawals, Rollovers, or Transfers between PA ABLE Accounts, as described above. The necessary forms, needed documentation, permissible payees, limitations, the federal and Pennsylvania state tax consequences, and the impact on government benefits may depend on which type of withdrawal is being taken. a. Qualified Withdrawals i. How to Request A Qualified Withdrawal may be requested by phone, online, or by obtaining and submitting a Withdrawal Request Form. To make the request by phone, call the Customer Service Center at 855-529-ABLE (2253). To make the request online, log into your account from PAABLE.gov, by clicking on “My Account,” then “Make a Withdrawal.” To use the paper Withdrawal Request Form, download it from the website or request it by calling the Customer Service Center. Additionally, Qualified Withdrawals from the Checking Account Option may be made by check, ATM withdrawals or your debit card. Your Qualified Withdrawal may be paid directly to you or to a third party you designate, such as a medical services provider. While the PA ABLE Program will not routinely require documentation that shows the withdrawal is for Qualified Disability Expenses, PA ABLE reserves the right to do so. ii. Tax Consequences When withdrawn and used for Qualified Disability Expenses, the earnings on contributions to your Account are exempt from both federal and Pennsylvania state income tax as long as the funds withdrawn are used within the same calendar year or within sixty days of the last day of the same calendar year as the withdrawal. Nevertheless, PA ABLE is required by federal law to issue an IRS Form 1099-QA for the withdrawal. The 1099-QA specifies the principal and earnings breakdown of the withdrawal amount. The 1099-QA will be issued to the Account Owner. You should keep appropriate records to substantiate to the Internal Revenue Service and/or the Pennsylvania Department of Revenue that the withdrawal was used for Qualified Disability Expenses. iii. Government Benefit Consequences A Qualified Withdrawal will not have any impact on your federal needs-based benefits, with the possible exception that Qualified Withdrawals for housing expenses might affect your SSI benefits if not used in the same month the withdrawal is taken. For SSI purposes, withdrawals taken with the intent of using them for non-housing Qualified Disability Expenses may be used at any time. However, if they are subsequently used for non-qualified purposes, your benefits may be affected. For further information see Part 3.B. For IRS income tax purposes, however, Qualified Withdrawals might need to be used in the same tax year that they are taken in order to be tax exempt. A Qualified Withdrawal will not have any impact on your Pennsylvania needs-based benefits related to health (including Medical Assistance), disability, or student financial aid. b. Direct Rollovers i. How to Request You may directly roll over the funds in your PA ABLE Account to another state’s ABLE program by obtaining a form from the ABLE plan that will receive the funds. This form should indicate that you (or the new Account Owner) have an account in the other state’s ABLE program and wish the PA ABLE Program to transmit your funds to that account. The non-Pennsylvania ABLE program will send that form to the PA ABLE Program and, once the form is received, PA ABLE will send the funds directly to the non-Pennsylvania ABLE program. When the PA ABLE Program sends your funds to the receiving plan, it will include notification of the principal and earnings portions of the total amount. The payee will be the receiving plan “for the benefit of” you. ii.Tax Consequences If a Direct Rollover for the same Account Owner is madeonlyonce in a 12-month period or when the Account Owneris changed, it is not a taxable event for federal or Pennsylvania income tax purposes.Nevertheless, PA ABLEis required by federal law to issue you an IRS Form 1099-QA for the withdrawal.The 1099-QA specifies the principal and earnings breakdown of the withdrawal amount. You should keep appropriate records to substantiate to the Internal Revenue Service and/or thePennsylvania Department of Revenue that the above requirements were met.If theRollover is to an account for a new Account Owner, it may be considered a gift from theold Account Owner to the new Account Owner for federal gift and generation-skipping transfer tax purposes. Before making such a DirectRollover, you may wish to consult a tax advisor. iii.Government Benefit Consequences A Direct Rollover for the same Account Owner will not have any impact on your federal needs-based benefits or your Pennsylvania benefits related to health (including Medical Assistance), disability,orstudent financial need. It is not clear whether or how a Direct Rollover to a new Account Owner will impact your government benefits. You may wish to consult your benefits counselor before making such a Rollover. c.Indirect Rollovers i.How to Request You may make anIndirect Rolloverfrom your PA ABLE Accountto another state’s ABLE program by making a withdrawal payable to yourself. To request the withdrawal by phone call the Customer Service Centerat 855-529-ABLE (2253).To make the request online, go to PAABLE.gov, click on “My Account,” then “Asset Manager,” and then “Makea Withdrawal.” To use the paper Withdrawal Request Form, download itfrom the website or request it by calling the Customer Service Center.Once you receive the funds, contributethem to the non-Pennsylvania ABLE program. You must contribute the funds to the non-Pennsylvania ABLE program within 60 days of the withdrawal. Unless you provide the receiving programwith documentation of the principal and earnings breakdown, that programwill treat the entireIndirectRollover amount as earnings. This means that if you subsequently take a Non-qualified Withdrawal you may owe taxes on the entire amount rolled over. When making an Indirect Rollover from PA ABLE be sure to contact the Customer ServiceCenter855- 529-ABLE (2253) to obtain documentation of thecontributions and earnings. ii.Tax Consequences The tax consequencesfor an Indirect Rollover arethe same as for a Direct Rollover. SeePart 2.E.4.b (ii). 60 61 iii. Government Benefit Consequences The government benefit consequences for an Indirect Rollover are the same as a Direct Rollover. See Part 2.E.4.b (iii). d. Transfers between PA ABLE Accounts i. How to Request You may withdraw assets from your PA ABLE Account and transfer them to another PA ABLE Account for a different Account Owner, including a Successor Owner (“Transfer”). However, the Account Owner of the Account to which the assets are going must be an Eligible Individual and be a Sibling of the Account Owner of the Account from which they are transferred. An Account Information Change Form must be completed and the new Account Owner must complete an Enrollment Form. Both forms are available at PAABLE.gov or by calling 855-529-ABLE (2253). ii. Tax Consequences The tax consequences for a Transfer between PA ABLE Accounts are the same as a Direct Rollover. See Part 2.E.4.b (ii). iii. Government Benefit Consequences The government benefit consequences for a Transfer between PA ABLE Accounts are the same as a Direct Rollover. See Part 2.E.4.b (iii). e. Non-qualified Withdrawals i. How to Request A request for a withdrawal other than for the purposes or reasons discussed above (a Non-qualified Withdrawal) from your Account may be requested by phone, or online, or by obtaining and submitting a Withdrawal Request Form. To request by phone, call the Customer Service Center at 855-529-ABLE (2253). To make the request online, go to PAABLE.gov, click on “My Account,” then “Asset Manager,” and then “Make a Withdrawal.” To use the paper Withdrawal Request Form, download it from the website or request it by calling the Customer Service Center. Additionally, to make a Non-qualified Withdrawal from your Checking Account Option, you may write a check, use an ATM, or use your debit card. ii. Tax Consequences Generally the earnings portion of a Non-qualified Withdrawal will be subject to federal income taxes at the ordinary income tax rate of the Account Owner and an additional federal tax of 10%. Additionally, Account Owners who are Pennsylvania taxpayers will be subject to state income taxes. PA ABLE will issue to the Account Owner a Form 1099-QA for the withdrawal that will specify the principal and earnings portions of the total withdrawal. In the event of a return of Excess Contributions (see Part 2.B.2.), the Form 1099-QA will be issued to the contributor. 70 E. Additional Social Security Information The Social Security Administration (“SSA”) publishes and regularly updates additional guidance on ABLE accounts through the SSA Program Operational Manual System (“POMS”) at https://secure.ssa.gov/poms.nsf/lnx/0501130740. For SSA POMS guidance related to general information about ABLE accounts, visit: https://secure.ssa.gov/poms.nsf/lnx/0501130740. For SSA POMS guidance related to SSA representative payees and ABLE accounts, visit: https://www.ssa.gov/payee/able_accounts.htm. For SSA POMS guidance related to representative payee and direct deposit of SSI benefits into an ABLE account, visit: https://secure.ssa.gov/poms.nSf/lnx/0202402055. You should consult with your own legal and financial advisors and closely review all relevant guidance available on SSA.gov regarding your specific situation. Part 4. Tax Information The federal tax treatment of an Account depends on PA ABLE being a “qualified ABLE program” under Section 529A of the Internal Revenue Code. The tax rules applicable to ABLE plans are complex, are, in some respects, open to different interpretations. The discussion of the federal tax treatment in this Disclosure Statement is not exhaustive; it is intended to provide general information as understood by PA ABLE based on the Internal Revenue Code, and Internal Revenue Service announcements. The discussion of the Pennsylvania tax treatment is based on PA ABLE’s understanding of the Pennsylvania ABLE Act and Pennsylvania tax law. In addition, Section 529A and federal and Pennsylvania tax laws in general are subject to legislative changes, regulatory changes, and court interpretations. Any of these could eliminate, reduce, or improve the tax advantages of PA ABLE or require changes in the structure of PA ABLE that may restrict or otherwise affect the use of your Account. A. Federal Tax Treatment 1. Tax Provisions Related to Contributions Generally, for federal tax purposes, contributions to an Account are made on an after-tax basis. That is, in the year the contribution is made, a contributor may not deduct the contribution from income for purposes of determining federal income taxes. However, contributions made by the beneficiary to his or her Account before January 1, 2026 may be eligible for a federal tax credit. 76 G. No Indemnification The Commonwealth, Treasury Department, PA ABLE, the Investment Firms, or Ascensus or any of their affiliates, will not indemnify any Account Owner against losses or other claims arising from the official or unofficial acts, negligent or otherwise, of a Commonwealth employee or arising from the acts, negligent or otherwise, of an Investment Firm, or Ascensus or any service providers authorized by PA ABLE and retained by an Investment Firm, or Ascensus. H. No Security Registration There has been no registration in connection with PA ABLE with the U.S. Securities and Exchange Commission or with any state securities commission. Part 6. Additional Legal and Administrative Information A. The Investment Guidelines The Investment Guidelines applicable to PA ABLE may be changed at any time. The current Investment Guidelines are available by calling our Customer Service Center at 855-529-ABLE (2253). B. PA ABLE Procedures and Requirements Your Account and your Pennsylvania ABLE Savings Program Contract are subject to all procedures and requirements adopted by PA ABLE from time to time. Additionally, PA ABLE reserves the right to: • Refuse, change, discontinue, or temporarily suspend Account services, including accepting contributions and processing withdrawal requests, for any reason. • Delay sending out the proceeds of a withdrawal request. • Refuse, following receipt of a contribution, withdrawal requests relating to that contribution for up to 13 days. • Suspend the processing of withdrawal requests or postpone sending out the proceeds of a withdrawal request under any emergency circumstances. C. Availability of Financial Statements and Other Reports Upon request, Account Owners will be sent financial reports of PA ABLE as well as any other official documents and reports issued by PA ABLE. These may also be available at PAABLE.gov. D. Suitability PA ABLE, the Department, the Commonwealth of Pennsylvania, Ascensus, and the Investment Firms make no representations regarding the suitability of PA ABLE’s Investment Options for any particular investor. Other types of investments and other types of savings vehicles may be 87 Checking Account Option for Plan provided by Fifth Third Bank, National Association, Member FDIC. The standard deposit insurance amount is $250,000 per depositor. Please see www.fdic.gov for insurance coverage. Fifth Third and Fifth Third Bank, National Association are registered service marks of Fifth Third Bancorp. Equal Housing Lender. GENERAL TERMS & CONDITIONS APPLICABLE TO THE CHECKING ACCOUNT OPTION The Checking Account Option is offered as an Investment Option under the Plan and administered by Fifth Third Bank, National Association. Checking accounts are owned by the Plan for the benefit of the Account Owner. Account Owners who select the Checking Account Option may access checking account information and authorize withdrawals from the checking account, subject to these Terms and Conditions with Fifth Third Bank, National Association. Under no circumstances may any interest in the checking account be sold, exchanged, or used as security or collateral for a loan. In addition, the checking account is subject to the terms and conditions of the Plan as set forth in the Plan Disclosure Booklet which contain important information about the Plan and the Checking Account Option, and limitations on your ability to contribute, withdraw, or transfer funds to and from the checking account. Transactions 1. Deposits to the Checking Account Option are limited to contributions made through your Plan. Banking Center, ATM, and mobile deposits, Direct Deposits, and any other Automated Clearing House (ACH) credits are not permitted on the checking account. 2. The Bank may refuse at any time to accept any deposit and it may, at any time, close the checking account of any Customer at the direction of the Plan Administrator. 3. Customer understands and agrees that the Bank will not accept a substitute check that was created by a person or entity other than a bank, which has not yet been transferred by a bank, unless otherwise agreed to by the Bank under separate written agreement. 4. The Bank assumes no liability for the payment of a post-dated check, unless notice of such post-dated check is given to the Bank in the form of a stop payment request as described below. If sufficient notice is received, the request will be treated as a stop payment request in accordance with the below stop payment provisions for all purposes including its effective period. It is the Customer’s obligation to remove a stop payment order for a post-dated item once the item is no longer post-dated. 5. The Bank is under no obligation to honor a check presented more than six months after date of issuance, but may charge Customer’s checking account for payment made thereafter in good faith.