Take Advantage of this Great ABLE Benefit
Many people with disabilities (and their supporters) think that if they work they cannot open an IL ABLE account. Not True! In fact, if you work there are even more benefits to owning an IL ABLE account.
Here are just a few benefits to working and owning and IL ABLE account:
- You can to contribute an additional amount above the $15,000 limit, up to the lesser of (a) the poverty line for a one-person household ($12,140 in 2019); or (b) the individual’s gross compensation for the taxable year.
- ABLE to Work can give you confidence that when your boss asks you to work additional hours, or you want to accept that raise, your IL ABLE account has that increased maximum contribution limit to allow for additional contributions. Remember that your earnings are not protected from the SSA income tests by contributing them to your ABLE account, only assets are. So, if you are earning money, your earnings may be subject to SSA income tests.
- If you work and have an IL ABLE account, you can easily arrange to have your paycheck direct-deposited into your account.
- Funds in an IL ABLE account are exempt from the SSA or Medicaid asset tests. (up to $100,000 for SSI recipients).
- Your additional contributions are eligible for the Saver’s Credit, an existing federal tax credit that low and middle-income individuals can currently claim when they make contributions to a retirement account.
- Remember, if you make contributions to your account above $15,000 under ABLE to Work, it is your (or your Authorized Individual’s) responsibility to ensure that you stay within contribution limits.
For more information about IL ABLE, contact Customer Service at 888-609-8683, 8am – 5pm, CT, Monday through Friday.
For more information about IL ABLE by visiting our FAQ’s web page.
Are you ready to open an IL ABLE account? Open an IL ABLE Account.