Have you considered an Illinois ABLE “Achieving a Better Life Experience” account in your financial planning with families who have a child with special needs or for individuals who have disabilities?
IL ABLE is a direct-sold investment and savings plan that eligible people with disabilities and their families can open to save for expenses related to living with a disability, without losing federal means-tested benefits such as SSI, SSDI and Medicaid.
Here are 5 things financial advisors and planners need to know about IL ABLE:
- Earnings are tax-free and funds can be withdrawn tax-free to cover a broad range of qualified disability expenses including housing, health and wellness, education and training, therapy, basic living expenses and more.
- Illinois taxpayers may deduct up to $10,000 for an individual, $20,000 for married taxpayers filing jointly, per tax year on their Illinois state income tax return, for their total combined contributions to any IL ABLE Plan. The individual and jointly filed limits on deductions will apply to total contributions regardless of whether the contributions are made to a single account or to more than one account.
- These quality companies are part of the IL ABLE investment and checking account line up: BlackRock, Charles Schwab, Fifth Third Bank and Sallie Mae. IL ABLE offers six investment options plus an FDIC-insured checking account option to meet the needs of the disability community – from Aggressive, seeking higher potential returns, to Conservative, placing asset preservation over growth. IL ABLE Account Owners may choose a single option or a blend of all seven options.
- An IL ABLE account can be funded by a third-party special needs trust to cover expenses that a special needs trust cannot pay for, such as housing.
- An IL ABLE account is easy to access by the Account Owner or Authorized Individual, allowing for greater independence and quality of life.
To be sure that your client is enrolled in the IL ABLE plan, look for the IL ABLE logo.
To schedule an IL ABLE presentation for your company, financial association or group, contact able@illinoistreasurer.gov.
Visit illinoisable.com for details on IL ABLE, Investment Options and Pricing and Performance.