There is still time to contribute for 2022
It’s hard to believe that 2022 is coming to a close, but there is still time to open or contribute to an IL ABLE Account to take advantage of these benefits before the year is over.
Maximize your annual IL ABLE contribution. Take advantage of the maximum 2022 annual contribution amount of $16,000 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. And, 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.
NOTE: Starting January 1, 2023, the Annual Contribution Limit will increase to $17,000.
Contribute more if you are a working Account Owner. Working Account Owners who are not participating in an employer-sponsored retirement plan can contribute an additional amount above the $16,000 annual contribution limit, equal to gross wages for the year or the poverty guidelines amount for the previous year ($12,880 for 2021), whichever is lower. Learn more about IL ABLE and working Account Owners at illinoisable.com and in this accessABLE article.
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 2022 state tax return – up to $10,000 if filing as an individual or $20,000 if filing jointly. 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. Take the IL ABLE Eligibility Quiz. IL ABLE doesn’t charge fees for the rollover. If you plan to roll over funds from a 529 college savings account, it is important to remember that the total annual aggregate contribution into an IL ABLE Account is $16,000 in 2022.
Give the gift of savings. You can give a gift of savings with a contribution to a loved one’s IL ABLE Account with Ugift®. Using UGift© is simple – just follow these two easy steps:
- Ask the IL ABLE Account Owner or the Authorized Individual for their unique Ugift® code. (An Account Owner or Authorized Individual can get the code by logging into the Account online).
- Visit UgiftABLE.com and input the code to make a direct contribution to the IL ABLE Account Owner’s account.
Making a gift to the Account of a loved one who receives SSI benefits will protect those benefits and funds can be used to pay for a wide range of qualified disability expenses that improve quality of life and increase independence. And, don’t forget, if the contributor to an IL ABLE Account is an Illinois taxpayer, the contribution may be deductible from state income tax. Download and print a Ugift® Gift Certificate to mark the holiday gift.
Visit illinoisable.com for more information on ways of contributing to an IL ABLE Account.
To learn more about IL ABLE Accounts or to open an IL ABLE Account visit illinoisable.com and read the Plan Disclosure Booklet.