The 2009–2021 markets were very good for investors, but volatility – the financial markets’ ups and downs – has increased dramatically in 2022. It’s not uncommon to see pullbacks and volatility after a period of exceptionally strong markets like those experienced since 2009.
Spring is in full bloom – grass is green, the trees are blossoming, and the school year is winding down. For some, this means going through an Individualized Education Plan (IEP) review to reflect on the past year’s accomplishments and to look ahead to the next school year. This is also a great time to review your child’s short and longer-term financial needs. For example, will they need additional therapies or educational supports in the coming year? Is transition planning within sight?
Managing money can be intimidating especially if it is a new responsibility or you feel you don’t have the right skills or language to talk about it. Financial literacy is all about empowering individuals with the skills and understanding needed to confidently manage their personal finances. As part of National Financial Literacy Month, we interviewed Carleda Johnson, Independent Living Skills Coordinator and Financial Literacy Coach at Access Living. Carleda shares her knowledge and expertise below to help you build your financial literacy.
2021 was a banner year for investors as the S&P 500, and other major indices that track financial markets reached all-time highs.
This year is off to a bumpier start with inflation, pandemic-related supply chain disturbances, and the current conflict between Russia and Ukraine contributing to the market’s volatility and investor uncertainty.
Total annual contributions allowed to your IL ABLE Account are now $16,000
Starting January 1, 2022, the annual contribution limit to an ABLE account has increased to $16,000 from the previous limit of $15,000. This amount includes all contributions from Account Owners, family members, friends and other third parties. Anyone can contribute to an IL ABLE account, as long as total contributions do not exceed the $16,000 per year. Read about this change in disability scoop article or visit the IL ABLE website.
Also, remember that by taking advantage of ABLE to Work you can save more than the $16,000 annual contribution limit. Working Account Owners who do not already participate in an employer-sponsored retirement plan can contribute an additional amount equal to gross wages for the year or the poverty guidelines amount, whichever is lower. Find quick answers to your IL ABLE questions with IL ABLE FAQs
Tax benefits and maximum contributions in IL ABLE will start your New Year right!
2021 has been another challenging year, but you can end it on a high note by opening or contributing to your IL ABLE account now and take advantage of these benefits before the year is over:
Optimize your annual IL ABLE contribution. Take advantage of the maximum 2021 annual contribution amount of $15,000 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. 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. And, good news: The annual contribution limit increases to $16,000 in 2022!
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 2021 state tax return – up to $10,000 if filing as an individual or $20,000 if filing jointly. But 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. See here for eligibility information. IL ABLE doesn’t charge fees for the rollover. The total annual aggregate contribution into an ABLE account is $15,000 in 2021, so keep that in mind as you plan your 529-to-IL ABLE rollover. Have questions about how to do it? Call Customer Service.
Take advantage of ABLE to Work for greater savings. Working Account Owners who do not already participate in an employer-sponsored retirement plan can contribute an additional amount above the $15,000 annual contribution limit, equal to gross wages for the year or the poverty guidelines amount, whichever is lower.
You can play Santa’s helper with a Ugift® contribution.
Give a gift to a person with a disability through a contribution to their IL ABLE account.
Ugift® is the easiest way to give a gift that will last longer than opening a present. Follow these two, easy steps:
Ask the IL ABLE Account Owner or the Authorized Individual (an adult who is authorized to transact on the account) for their unique Ugift® code. (they can get the code by logging into the account).
Visit UgiftABLE.com and input the code to make a direct contribution to the IL ABLE Account Owner’s account.
It’s easy! Making a gift to a loved one’s account who receives SSI benefits will protect those benefits and funds can be used to pay for long list of qualified disability expenses that improve quality of life and increase independence.
Spring is the time to start investing in a bright financial future by using the easy Ugift contribution option.
Ugift® is an easy-to-use, no-cost way for family and friends to make a contribution directly to your IL ABLE account . How does it work?
First, you the IL ABLE Account Owner (person with the disability) or your Authorized Individual (an adult who is authorized to transact on the account) logs into the IL ABLE account here and accesses unique Ugift® code. Click here to log into your account.
Next, your or your Authorized Individual share that code with friends, family or others who want to contribute to your account.
Next, the gift giver visits UgiftABLE.com and inputs the code to make a direct contribution to your IL ABLE account.
All gift contributions made via Ugift® are deposited directly into your account. If you receive SSI benefits, your friend or loved one’s contribution to your IL ABLE account will help you preserve those benefits. Funds in your IL ABLE account can be used to pay for a long list of qualified disability expenses that can improve yourquality of life and increase your independence. Visit the UgiftABLE.com website for complete information.
Download and print a Ugift® Gift Certificate to mark the holiday gift. Learn more at UgiftABLE.com.
If the contributor to an IL ABLE account is an Illinois taxpayer, contributions may be deductible from state income tax. Visit illinoisable.com for more information.
When you open your Illinois ABLE account, you will be able to choose the investment options that meet your needs. When you invest, you make choices about what to do with your money and investment risk is something to know about as you decide.