An IL ABLE Account Is an Important “Working” Tool.
October is National Disability Employment Awareness Month and a time to celebrate that many more people with disabilities than ever are working. Did you know that if you are working, your Illinois ABLE account can work even harder for you?
That’s right! ABLE account owners who work can contribute even more each year to their Illinois ABLE account without losing federal means-tested benefits.
If you are an ABLE account owner and you do not already participate in your employer’s pension plan, the total amount that can be contributed to your IL ABLE account in 2019 could be as high as $27,140 in 2019.
Let’s do the math: An ABLE account can receive up to $15,000 in total contributions in 2019. However, if you are an Illinois resident, and you own an ABLE account, and you work, you can contribute an additional amount above the $15,000 annual contribution limit. That amount is calculated as the higher of your gross wages or the poverty limit for a one-person household, which is currently $12,140 for Illinois residents. The most that can be contributed in the case of a working ABLE account owner in 2019 is $27,140. This means that the working ABLE account owner would have to earn at least $12,140 in gross wages in order to contribute $27,140 to the ABLE account. Let’s say you o earn $5,000 in gross wages this year. A total of $20,000 can be contributed to your ABLE account. And your benefits are still excluded from the Social Security asset or resource test.
Plus, you will benefit from tax-free earnings and tax-free withdrawals, as long as you use your ABLE funds for Qualified Disability Expenses (QDE). Click here to learn more about Qualified Disability Expenses.
Just as you should keep other records for tax purposes, you or your Authorized Individual should keep a record of your wages, such as a copy of your W-2.
An Illinois ABLE account encourages working and saving by individuals with disabilities and can help you achieve your personal American Dream.
For more information about ABLE to Work and Illinois ABLE, visit Illinois ABLE.
To enroll in Illinois ABLE, visit il.savewithable.com. Or call IL ABLE at 888-609-8683.