ABLE Account
What is an ABLE Account?
ABLE stands for the Stephen Beck, Jr. Achieving a Better Life Experience Act of 2014 and refers to savings and investment Accounts that Eligible Individuals can own for the purpose of paying for Qualified Disability Expenses.
IL ABLE Accounts make it possible for eligible people with disabilities and their families to save and invest for expenses related to living with a disability without losing, or losing access to, federal means-tested benefits such as SSI, SSDI and Medicaid. Earnings and withdrawals are tax-free if they are spent on a broad range of Qualified Disability Expenses including housing, health and wellness, education and training, therapy, basic living expenses and more.
IL ABLE Account Owners who receive SSI benefits can exceed the $2000 asset cap without losing benefits
High-quality Investment Options that fit your goals and comfort level
Popular Checking Account Option with a real-time debit card
Low fees
Great tax benefits: Illinois taxpayers can make a tax-deductible contribution to any IL ABLE Account: up to $10,000 for individual filers and $20,000 for those filing jointly.
If you are an SSI recipient, you can save up to $100,000 in your IL ABLE Account and still receive your monthly SSI benefits. SSDI benefits are not affected by the amount in your IL ABLE Account.
The total Annual Contribution Limit to an IL ABLE Account is $16,000 ($17,000 beginning January 1, 2023) per calendar year. This amount includes all contributions from Account Owners, family members, friends and other third parties. IL ABLE Account Owners who earn income may be eligible to make additional contributions exceeding the Annual $17,000 Contribution Limit.
You may choose among any combination of six Target Risk Options and an FDIC-insured interest-bearing Checking Account Option.
IL ABLE Accounts solve a long-time predicament that many people with disabilities face – how to build financial wellness without risking much-needed federal government benefits.
Illinois leads the National ABLE Alliance, an 18-state consortium that represents more than one-quarter of the nation’s ABLE-eligible population and offers a best-in-class ABLE program to people with disabilities anywhere in the country.
IL ABLE Accounts can be opened online at illinoisable.com or by sending in a paper enrollment form, which can be downloaded here. IL ABLE Accounts are not available at banks and are not sold by financial advisors and cannot be opened at any physical location or bank, including Fifth Third locations.
*Always consult with your tax expert and those that established your special needs trust when planning for your young adults future financial needs.