IL ABLE & Working Account Owners
IL ABLE Account Owners who earn income can contribute additional funds (also known as ABLE to Work) beyond the Annual Contribution Limit of $18,000 – up to 14,580 more.
How it works
The total additional annual contribution allowed is equal to:
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The U.S. Department of Health and Human Services (HHS) Poverty Guidelines* amount for a one-person household in the Account Owner's state of residence for the previous calendar year, currently $14,580 for Illinois.
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OR
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The Account Owner's gross wages, whichever is less.
Working Account Owners are not eligible to contribute additional funds to their IL ABLE Account if they are already contributing to an employer-sponsored:
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401(k) defined contribution plan
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403(b) annuity plan
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457(b) deferred compensation plan
It is the Account Owner's or Authorized Individual's responsibility to ensure that the Annual Contribution Limit is not exceeded. Contributions in excess of the allowable limits could impact tax obligation. Consult a tax advisor before making any such increase.
Below are hypothetical examples of how an employed Account Owner in Illinois might take advantage of the additional contribution allowance:
For more information, consult the Plan Disclosure Booklet.
Savers Credit
Account Owners may be eligible for a federal income-tax credit for contributions made to their ABLE Account.
Visit IRS.gov or consult a tax advisor for more information.
*The Poverty Guidelines amount changes each year. Please consult the U.S. Department of Health and Human Services Poverty Guidelines for the correct amount for your state of residence.
Read the Plan Disclosure Booklet.