Brothers Build Independence with IL ABLE

Mom and sons Zach and KC share their IL ABLE story

For people with disabilities, the positive impact of being able to save money in an IL ABLE account extends far beyond the dollar amount of their savings. IL ABLE accounts can foster a sense of accomplishment and independence. In a recent interview, IL ABLE Account Owners Zach and KC, along with their mom, Micki share how IL ABLE is an important financial resource for them.

Springtime is a Great Time to Plan Ahead with IL ABLE

Save for your child’s short and long-term needs

Spring is in full bloom – grass is green, the trees are blossoming, and the school year is winding down. For some, this means going through an Individualized Education Plan (IEP) review to reflect on the past year’s accomplishments and to look ahead to the next school year. This is also a great time to review your child’s short and longer-term financial needs. For example, will they need additional therapies or educational supports in the coming year? Is transition planning within sight?

Whether expenditures for your child’s disability needs are right around the corner or further down the road, it is never too early to save for them. IL ABLE accounts are a valuable resource for helping to meet the anticipated or future disability-related needs of your child. In fact, according to a recent IL ABLE survey of the Plan’s Account Owners, approximately 70% said they use their ABLE accounts to save for future expenses. IL ABLE offers seven low-cost, high-quality investment options, including a checking account with a debit card. Also, you can opt to increase savings through a recurring payroll direct deposit. (Read more about Savings and Investing with IL ABLE.)

What Will You Do with Your Tax Refund?

Consider opening or contributing to an IL ABLE account

Tax refunds are always welcome, and they can give you a chance to think about the disability expenses you want to save for.  Do you want to save the refund for an unexpected medical expense?  Are you going to need new tires for the car that gets you to and from your job? Is there travel in your future?  Whatever your financial dreams and goals contributing your tax refund to an IL ABLE account can help you reach them.

April is National Financial Literacy Month

Elevate your financial know-how

Carleda Johnson

Managing money can be intimidating especially if it is a new responsibility or you feel you don’t have the right skills or language to talk about it. Financial literacy is all about empowering individuals with the skills and understanding needed to confidently manage their personal finances. As part of National Financial Literacy Month, we interviewed Carleda Johnson, Independent Living Skills Coordinator and Financial Literacy Coach at Access Living. Carleda shares her knowledge and expertise below to help you build your financial literacy.

It’s Tax Time!

What you need to know about IL ABLE and taxes

Important facts to keep in mind when filing your tax return for 2021. 

  • If you owned an IL ABLE account in 2021, you should have received tax form 5498 (shows contributions) and tax form 1099QA (shows distributions). If you did not receive these forms and you made contributions or took distributions from your account in 2021, call Customer Service at 888-609-8683.
  • If you are an IL ABLE account owner, withdrawals from and earnings in your IL ABLE account are exempt from state and federal taxes as long as the withdrawals are used to pay for qualified disability expenses
  • If you are an Illinois taxpayer and you contributed to any IL ABLE account in 2021, you may be able to take a deduction from your Illinois state income taxes. 
  • The Illinois state income tax deduction is up to $10,000 if filing as an individual or $20,000 if filing jointly. Check with your tax advisor about your personal tax situation. 
  • As always, consult with a tax advisor with any personal tax questions.  

Keeping You Savings and Investment Goals on Track

New year sees market swings

2021 was a banner year for investors as the S&P 500, and other major indices that track financial markets reached all-time highs. 

This year is off to a bumpier start with inflation, pandemic-related supply chain disturbances, and the current conflict between Russia and Ukraine contributing to the market’s volatility and investor uncertainty. 

It is challenging to predict market movements month to month or even quarter to quarter. That is why as an investor, it is suggested by experts to periodically review your investments to ensure they are aligned with your short-term and long-term investment objectives that match your tolerance for risk and savings goals. 

Download the IL ABLE “What Type of Investor Are You” guide to learn about investment goals and risk tolerance. 

IL ABLE offers a variety of investment options to meet the individual needs and risk tolerance of Account Owners. Learn more about IL ABLE investment options at illinoisable.com and in the IL ABLE Plan Disclosure Documents.

Focusing on your big picture goals, comfort, and your risk tolerance will help you stay on course during periods of market volatility.

Illinois State Treasurer Declares the Special Olympics Illinois Winter Games Open!

Treasurer Frerichs paraded with athletes and spoke at the Opening Ceremonies. 

The Treasurer was on-hand to kick-off the Special Olympics Illinois Winter Games 2022! The games, which featured skiing and snowshoeing competitions, were held in beautiful and wintery Galena.

After a parade down historic Main Street, the Treasurer declared the games open and shared the many benefits of IL ABLE savings and investment accounts for SOILL athletes and all ABLE-eligible individuals. Some of those benefits are:

  • You can contribute up to $16,000 per year to this tax-free savings account – more if you work.
  • Contributions may be tax deductible.
  • You can save for everyday and/or long-term expenses.

“I wish all the Special Olympics athletes the best of the luck in the Winter Games and encourage families to find out more about how to save for your child’s future at illinoisABLE.com,” said Treasurer Frerichs.

Learn more about the IL ABLE Special Olympics Illinois partnership and IL ABLE.   

Find quick answers to your IL ABLE questions with IL ABLE FAQs.

The IRS Raises Annual Contribution Limit for ABLE Accounts

Total annual contributions allowed to your IL ABLE Account are now $16,000

Starting January 1, 2022, the annual contribution limit to an ABLE account has increased to $16,000 from the previous limit of $15,000. This amount includes all contributions from Account Owners, family members, friends and other third parties. Anyone can contribute to an IL ABLE account, as long as total contributions do not exceed the $16,000 per year. Read about this change in disability scoop article or visit the IL ABLE website.

Also, remember that by taking advantage of ABLE to Work you can save more than the $16,000 annual contribution limit.   Working Account Owners who do not already participate in an employer-sponsored retirement plan can contribute an additional amount equal to gross wages for the year or the poverty guidelines amount, whichever is lower. Find quick answers to your IL ABLE questions with IL ABLE FAQs