Maximizing the benefits of saving and investing with IL ABLE
Did you know that an Account Owner’s contributions to their IL ABLE Account may be eligible for the Retirement Savings Contributions Credit – also known as the Tax Savers Credit?
What is the Tax Savers Credit?
The Tax Savers Credit is a tax deduction that low- to moderate-income taxpayers may be eligible to take – including ABLE Account Owners who contribute to their own Account.
Who is eligible?
To qualify for the Tax Savers Credit, an IL ABLE Account Owner must:
- Be 18 years or older,
- Not be claimed as a dependent on someone else’s tax return,
- Not be a student,
- Meet income requirements, and
- Have contributed to their own ABLE Account during the tax year for which a tax return is filed.
How does the Tax Savers Credit Work?
The maximum contribution amount that qualifies for the credit is $2000. Taxpayers, if they are eligible and depending on their adjusted gross income reported on their 1040 tax form, may receive a credit of up to 50% of $ 2,000 for contributions they made to their own ABLE Account. Rollover contributions do not qualify for the credit, and eligible contributions may be reduced by distributions that are made from the Account.
As always, consult with a tax advisor to answer any personal tax questions about your specific circumstances.
Visit the IRS website for more information about the Tax Savers Credit.
Download the IL ABLE investment guide to compare investment options, potential risks and returns, fees, and how each choice may affect your disability savings goals. You can download and print the PDF here: What Type of Investor Are You?
Learn More About IL ABLE
Learn what an IL ABLE disability savings account is, who is eligible, how to open an account, and how it can help you save for qualified disability-related expenses while protecting important benefits.
- Visit the IL ABLE website
- Review the Plan Disclosure Booklet
- Explore IL ABLE Investment Options
- Open an IL ABLE Account online
For assistance, call 888-609-8683 Monday through Friday from 8 am to 5 pm CT, or email il.clientservice@savewithable.com. Support is available in multiple languages and for callers who are deaf or hard of hearing.