2020 will soon be history! Take advantage now of the benefits of IL ABLE before time runs out.
2020 has been an historic year and will soon come to an end, before it does here are 5 easy steps you can take to fund an IL ABLE account before the year is over.
- Take an Illinois State tax deduction for a contribution. Any Illinois taxpayer can contribute to any IL ABLE account and take a state tax income tax deduction on their 2020 state tax return – up to $10,000 if filing as an individual or $20,000 if filing jointly. Consult with a tax advisor to discuss your specific situation.
- Roll funds over from a 529 college savings account into and 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 college savings 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 a calendar year, so keep that in mind as you plan your 529-to-IL ABLE rollover. Have questions about how to do it? Call Customer Service.
- Optimize your annual IL ABLE contribution. A contribution to a loved one’s IL ABLE account makes a meaningful holiday gift. Take advantage of the maximum 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. 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.
- Put your Stimulus Payment to work! Many ABLE-eligible people received a stimulus payment of $1,200, officially called an Economic Impact Payment. If you receive monthly Social Security benefits, such as SSI and SSDI, you should have received your stimulus payment the same way that you receive your benefits. If you receive monthly SSI benefits, the stimulus payment MUST be spent within 12 months of receipt. Otherwise, it will count as an asset and could reduce your benefits. You can put all or part of your stimulus payment into an IL ABLE account. That way, you don’t have to worry about spending the money right away if you don’t need to. Putting the payment in an IL ABLE account can give you flexibility. Plus, it will have the same benefits protection that the other money in your IL ABLE account has. Learn more here.
- 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. Learn more about this by reading our October newsletter article Did You Work in 2020?.
2020 will soon come to an end. Take advantage of the benefits of an IL ABLE account before it does. Visit illinoisable.com to get started.