News and Updates from the Illinois State Treasurer's ABLE Plan
In March, Illinois State Treasurer Michael Frerichs stopped by the Ray Graham Association to meet with some of the disability services organization’s staff, leadership, and clients who are also IL ABLE Account owners. It was a wonderful visit that provided an opportunity to talk about programs like IL ABLE and the importance of financial literacy.
Read More “Treasurer Michael Frerichs Visits the Ray Graham Association”
Each October, National Disability Employment Awareness Month recognizes the skills, talents and contributions of people with disabilities in the workplace. It also provides an opportunity to share how an IL ABLE disability savings account can support employment, financial independence and long-term financial wellness.
Illinois State Treasurer Michael Frerichs traveled across Illinois and joined a radio interview to meet with people with disabilities, highlight inclusive employment and share information about IL ABLE. The program helps eligible people with disabilities save and invest for qualified disability expenses while helping protect eligibility for certain means-tested public benefits.
Read More “Illinois Treasurer Travels Across the State to Promote Financial Programs”
Read Treasurer Frerichs’ remarks upon accepting the ICED Award on behalf of the Office and IL ABLE.
“It is an honor for the Treasurer’s Office to be awarded Outstanding State Agency of the Year by the Interagency Committee on Employees with Disabilities – or I. C. E. D.
A goal of ICED is to promote and expand access to opportunities for State of Illinois employees with disabilities. Through the Achieving a Better Life Experience (ABLE) Program, we have also prioritized expanding access by working with state employees, retirees, and the broader state disability community. Illinois ABLE is one of the programs in my office that I am especially proud of because we built it for people with disabilities and their families to improve quality of life and build independence. Illinois ABLE accounts are savings and investment accounts that people with disabilities can open to save their own money and preserve federal benefits such as SSI and Medicaid. Funds in an Illinois ABLE account grow tax-free and can be used to pay for the expenses that come with living with a disability – things such as therapy, buying an accessible car, training, education, and even daily living expenses.
Even during the COVID-19 pandemic, people with disabilities and their families have been opening and contributing to their Illinois ABLE accounts. As of the end of last month, 2,700 accounts for people with disabilities are open across Illinois, with $25 million in savings. My staff and I have worked hard to make IL ABLE stronger each year since we launched the program in 2017. First, I championed legislation that provided state income tax deductions for Illinois taxpayers who contribute to any Illinois ABLE Account. We then helped incentivize employment by increasing the annual contribution limit for working people with disabilities to their IRAs. And this year the Illinois ABLE Asset Protection Act became law. The law allows assets in an IL ABLE Account to be transferred to another ABLE-eligible individual upon the death of an Account Owner, thereby avoiding probate costs, probate creditors, and Medicaid recovery (sometimes referred to as “clawback”). Finally, my office leads the way by providing a high-quality, low-cost ABLE program to people with disabilities.
Illinois is the leader of the 18-member National ABLE Alliance that represents one-quarter of the nation’s ABLE-eligible disability population. The bipartisan coalition collaborates to provide a flexible, best-in-class ABLE program to people with disabilities across the nation. That means increased financial security and improved quality of life. In closing, I would again like to thank ICED for recognizing the Office of the Illinois State Treasurer for being the Outstanding State Agency of the Year. We will continue to strive for excellence and remain deeply committed to the State of Illinois, our IL ABLE program, and people with disabilities.”
Illinois Treasurer Michael W. Frerichs
It’s National Disability Employment Awareness Month!
Open an IL ABLE Account to save and invest your paycheck.
This month, IL ABLE celebrates people with disabilities whose paid work helps keep the nation’s economy strong. This year’s theme is “America’s Recovery: Powered by Inclusion.” IL ABLE makes it possible for people with disabilities to save and invest the money they earn.
If you are working, you can start by saving and investing your paycheck. Open an IL ABLE Account any day or time. Just visit the IL ABLE website. The website explains who is eligible, helps you determine what type of investor you are, provides details on the checking Account and investment options, and includes a button to begin your enrollment. You can also download, print, and submit an enrollment application by mail if you prefer. Don’t wait! Start saving your paycheck now.
You can set up a direct deposit of your paycheck into your IL ABLE Account. If you receive SSI, an automatic direct deposit of your paycheck will build your ABLE savings and help protect against going over the $2,000 asset cap in your other accounts.
Learn how ABLE to Work can help you increase your IL ABLE Account and how a payroll direct deposit makes it easy. IL ABLE Account Owners who earn income can contribute additional funds (also known as ABLE to Work) beyond the Annual Contribution Limit of $20,000 – up to $15,650 more.
ABLE to Work allows those who work to save and invest more in their IL ABLE.
ABLE to Work allows you to contribute even more to your IL ABLE Account each year if you are working.
ABLE Account Owners who earn income may contribute additional funds beyond the annual $15,000 contribution limit. The additional annual contribution amount is equal to the U.S. Department of Health and Human Services (HHS) Poverty Guidelines amount for a one-person household (in your state of residence) or the Account Owner’s gross wages, whichever is less.
Working Account Owners are not eligible to contribute additional funds if they are already contributing to their retirement through:
Working Account Owners may take advantage of ABLE to Work, whether they work part-time or full-time. Account Owners should keep adequate records to ensure the limit is not exceeded. Any increase in contributions could impact tax obligations. Consult a tax advisor before making any such increase.
Remember, you can set up a payroll direct deposit, which makes saving and investing your paycheck quick and easy. Download the payroll direct deposit form now.
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.
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.