ABLE

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The Illinois ABLE program is a tax-advantaged investment program that provides persons with blindness or disabilities the option to save for disability-related expenses without putting their federal means tested benefits at risk.

Illinois ABLE Is a member of the National ABLE Alliance, a partnership of 14 states representing over one quarter of the population of the United States. The goal of the National ABLE Alliance is to provide the most robust ABLE services possible at the lowest cost to account owners.

 

To sign up for your ABLE account, visit the Illinois Save with ABLE website.

Button to click to sign up for an ABLE account

 
ABLE Frequently Asked Questions:
 

What is ABLE?

 

ABLE is a federally tax-advantaged savings program that will allow for Illinois families and individuals to save for disability-related expenses.  ABLE is similar to 529 College Savings programs, in that families would be allowed to set aside money for future qualified expenses, invest these funds in professionally designed savings accounts, and avoid some tax penalties on the fund.

 

What expenses can ABLE funds be used for?

 

ABLE allows for a wide range of expenses, as long as they are related to your blindness or disability, including expenses for education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, and expenses for oversight and monitoring, funeral and burial expenses.

 

Who qualifies for ABLE funds?

 

Individual beneficiaries must be disabled (defined as being entitled to benefits based on blindness or disability under Title II or XVI of the Social Security Act, or have a “disability certification” filed with the Treasury Secretary) AND must have been disabled before age 26 in order to receive benefits under the program.

 

How much can I deposit into my ABLE account per year?

 

Annual contributions per beneficiary are limited to the federal gift tax limitation. Currently, this would limit beneficiaries to $14,000 per year.

 

Will this program affect my SSI or other federal benefit eligibility?

 

ABLE is designed for individuals to retain their federal benefits. Up to $100,000 saved in ABLE accounts would not be counted toward a person with blindness or disability’s eligibility for SSI or other federal means tested programs.

 

What happens if my ABLE account exceeds $100,000?

 

Illinois ABLE accounts that exceed the $100,000, with beneficiaries receiving Supplemental Security Income (SSI) benefits, will have their SSI benefits suspended. Once the assets in the ABLE account fall back below the threshold of $100,000 their monthly SSI benefits will resume—beneficiaries will not have to reapply for SSI benefits once their accounts fall below $100,000. Even if the ABLE account exceeds $100,000, beneficiaries will remain Medicaid eligible

 

Can the Treasurer’s Office or any other state agency use ABLE funds for their own use?

 

No, much like the 529 College Savings program, ABLE funds are private assets controlled by the account owner. The State Treasurer is simply the administrator of the program.

 

Can I rollover my 529 College Savings account into an ABLE account?

 

Not without a penalty. Unfortunately at this time the federal government does not provide for a penalty free option to rolling over 529 College Savings accounts into ABLE accounts.

 

Is there a state tax-break for using ABLE like there is with College Savings?

 

No, the Illinois ABLE law currently does not provide for a state tax deduction for using ABLE.

 

For more information, see the ABLE Fact Sheet.

 

 

 

Please contact us for more information about ABLE, or call the Illinois ABLE Help Line at 1-888-609-8683.

 

To sign up for your ABLE account, visit the Illinois Save with ABLE website.