Did your disability begin before your 46th birthday? Starting January 1, you may be eligible to own an IL ABLE Account and benefit from these 4 ABLE features.
- Tax-free growth and withdrawals. Any earnings and withdrawals are tax-free when funds are used to pay for a wide array of qualified expenses that help to improve or maintain the Account Owner’s health, quality of life, or independence and can include everyday expenses such as rent, transportation, and education.
- Save and maintain eligibility for federal means-tested public benefits. The Social Security Administration disregards the first $100,000 in an IL ABLE Account balance from the Social Security Income (SSI) resource test. Funds saved in an IL ABLE Account won’t impact Social Security Disability Insurance (SSDI) and they are not a countable resource for other means-tested benefits programs such as Medicaid and SNAP.
- Save alongside a retirement account. An IL ABLE Account can complement your retirement savings account but it’s one where you can use the money when you need it for qualified disability expenses without penalties.
- And Illinois taxpayers who contribute to any IL ABLE Account can take a state income tax deduction – up to $10,000 for individual filers and up to $20,000 for joint filers.
Read the recently published New York Times article: More Disabled People Can Open Special Savings Accounts. Do You Qualify? (Subscription may be needed)
Take the Eligibility Quiz to see if you or a loved one is eligible for ABLE and get ready to open an Account on January 1!
Visit illinoisable.com for more information about IL ABLE, and read the Plan Disclosure Booklet.