Tax benefits and maximum contributions in IL ABLE will start your New Year right!
2021 has been another challenging year, but you can end it on a high note by opening or contributing to your IL ABLE account now and take advantage of these benefits before the year is over:
- Optimize your annual IL ABLE contribution. Take advantage of the maximum 2021 annual contribution amount of $15,000 before year’s end. This total includes all contributions from all sources. Anyone can contribute to an IL ABLE account – Account Owners, family members, friends and other third parties. A contribution to a loved one’s IL ABLE account makes a meaningful holiday gift. Contributions can be made by check, Ugift, electronic funds transfer or payroll deposit. You can even schedule recurring, automatic deposits into an IL ABLE account. And, good news: The annual contribution limit increases to $16,000 in 2022!
- Take an Illinois State income tax deduction. Illinois taxpayers can contribute to any IL ABLE account and take a state tax income tax deduction on their 2021 state tax return – up to $10,000 if filing as an individual or $20,000 if filing jointly. But you must make your contribution by December 31st! Consult with a tax advisor to discuss your specific situation.
- Roll funds over from a 529 college savings account into an IL ABLE account. Do you have funds in a 529 college savings account that might be better used in an IL ABLE account? Funds in the 529 account can be rolled into an IL ABLE for the same beneficiary or for a member of the family of the 529 account beneficiary as long as the beneficiary is eligible to own an ABLE account. See here for eligibility information. IL ABLE doesn’t charge fees for the rollover. The total annual aggregate contribution into an ABLE account is $15,000 in 2021, so keep that in mind as you plan your 529-to-IL ABLE rollover. Have questions about how to do it? Call Customer Service.
- Take advantage of ABLE to Work for greater savings. Working Account Owners who do not already participate in an employer-sponsored retirement plan can contribute an additional amount above the $15,000 annual contribution limit, equal to gross wages for the year or the poverty guidelines amount, whichever is lower.
Visit illinoisable.com to get started.
You can play Santa’s helper with a Ugift® contribution.
Give a gift to a person with a disability through a contribution to their IL ABLE account.
Ugift® is the easiest way to give a gift that will last longer than opening a present. Follow these two, easy steps:
- Ask the IL ABLE Account Owner or the Authorized Individual (an adult who is authorized to transact on the account) for their unique Ugift® code. (they can get the code by logging into the account).
- Visit UgiftABLE.com and input the code to make a direct contribution to the IL ABLE Account Owner’s account.
It’s easy! Making a gift to a loved one’s account who receives SSI benefits will protect those benefits and funds can be used to pay for long list of qualified disability expenses that improve quality of life and increase independence.
Visit the UgiftABLE.com website for complete information.
Download and print a Ugift® Gift Certificate to mark the holiday gift. Learn more at UgiftABLE.com.
If the contributor to an IL ABLE account is an Illinois taxpayer, contributions may be deductible from state income tax. Visit illinoisable.com for more information.