Everyone has a reason to save money. IL ABLE tax-advantaged savings and investing Accounts can be a powerful financial tool to help Eligible Individuals with disabilities and their Authorized Individuals meet their short-, medium-, and long-term savings goals. Here are five of the most common reasons why eligible individuals and their Authorized Individuals open an IL ABLE Account.
- To help eligible individuals with disabilities save for things they want or need currently and will need in the future. IL ABLE offers 7 low-cost, high-quality Investment Options to meet a variety of needs – 6 Target Risk Investment Options and an FDIC-insured Checking Account Option that comes with a debit card. Learn more about IL ABLE’s Investment Options.
- Eligible individuals can save money without risking their public benefits such as SSI or Medicaid. In fact, Account Owners can save up to $100,000 without risking their SSI benefits. Owning an IL ABLE Account can help prevent the need to spend down unused benefits unnecessarily. Account Owners who have money left over at the end of the month and risk exceeding the asset cap have the option to save the extra money in their IL ABLE Account. Additionally, savings in an IL ABLE Account are not counted when determining eligibility for other federal needs-based benefits, such as Medicaid, Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), housing assistance programs, and federal financial aid for higher education. Learn more about IL ABLE & Public Benefits.
- Funds in an IL ABLE Account can be used tax-free for a wide variety of Qualified Disability Expenses. These are expenses that are incurred as a result of living with a disability and are intended to improve the Account Owner’s quality of life, enhance health, and provide greater independence. Examples of Qualified Disability Expenses include expenses such as education, therapies, transportation, and even everyday expenses like groceries. Learn more about Qualified Disability Expenses.
- IL ABLE Accounts are self-directed Accounts that work on their own or as a complement to a Special Needs Trust. That means Account Owners or their Authorized Individuals control how to invest and use the funds in the Account.
- Annual contributions totaling up to the Annual Contribution Limit of $18,000 can come from any source: the Account Owner, Authorized Individuals, family, friends, small inheritances, fundraisers, small insurance settlements, crowdfunding, and third parties. Learn more about Contributing to an IL ABLE Account.
- BONUS! Illinois taxpayers who contribute to an IL ABLE Account may be able to take a state income tax deduction – up to $10,000 for individual filers and up to $20,000 for joint filers. Consult with a tax professional to discuss your specific circumstances.
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.