Resources for understanding how IL ABLE Accounts and public benefits programs work together.
How does owning an IL ABLE Account affect eligibility for federal benefits? That is one of our most frequently asked questions! The good news is that people who are currently receiving federal benefits, or who may receive them in the future, can build savings with an IL ABLE Account and maintain eligibility for federal means-tested programs such as Supplemental Security Income and Medicaid. The following resources provide guidance on how an IL ABLE Account and public benefits programs work together.
Social Security Supplemental Income (SSI)
IL ABLE Accounts allow people currently receiving, or who may receive SSI in the future, to save above the $2000 asset cap. In fact, an IL ABLE Account Owner can build savings up to $100,000 without affecting their SSI benefits. If an Account balance goes above $100,000, the SSI benefit is temporarily suspended and will resume when the Account is brought down below $100,000. Eligibility for SSI is not lost.
Did you know that SSI payments can be direct deposited into an IL ABLE Account? Contact Customer Service at Call (888) 609-8683, Monday – Friday, 8am – 5pm CT to learn more.
Learn more about SSI and IL ABLE Accounts at the Social Security Administration’s website.
Want to hear directly from the Social Security Administration about ABLE? Click here to watch a recently recorded webinar with SSA representative and ABLE program experts.
Remember: IL ABLE Accounts are asset protectors, not income protectors. An individual’s income may still be considered when determining eligibility for means-tested benefits.
Medicaid
Assets in an IL ABLE Account will not be counted when determining eligibility for “Medicaid applicants and beneficiaries who are subject to the resource test”. The Department of Health and Human Services issued this letter, which provides guidance on ABLE Accounts and State Medicaid Programs.
Supplemental Nutrition Assistance Program (SNAP) & Housing and Urban Development Housing Assistance Programs (HUD)
Like Medicaid, assets in an IL ABLE Account are not counted in determining eligibility for SNAP and HUD benefits. You can read more about how SNAP and HUD treat ABLE Accounts in determining eligibility at the following links:
- Supplemental Nutrition Assistance Program (SNAP)
- Housing and Urban Development Housing Assistance Programs
Free Application for Federal Student Aid (FAFSA)
IL ABLE Accounts are a great resource for saving for meaningful Qualified Disability Expenses, such as education. Account Owners who are heading to college and completing the FAFSA form do not need to include assets in their IL ABLE Account. View the list of reportable assets at the federal Student Aid website.
IL ABLE Accounts can be valuable financial tool to save funds for now and in the future all while maintaining vital public benefits. Learn more about IL ABLE at illinoisable.com and by reading the IL ABLE Plan Disclosure Booklet.
Ready to open an IL ABLE Account? Start here.
List of links noted in this post:
- Supplemental Security Income (SSI)
- Medicaid
- Supplemental Nutrition Assistance Program (SNAP)
- Housing and Urban Development Housing Assistance Programs (HUD)
- Free Application for Federal Student Aid (FAFSA)
- Qualified Disability Expenses
- Social Security Benefits and ABLE Accounts webinar
- Plus these additional References and Resources for ABLE and public benefits you may find useful.