ABLE to Work

You can contribute even more to your IL ABLE account 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 the additional funds if they are already contributing to their retirement through:
    • a defined contribution plan
    • an annuity contract
    • an eligible deferred compensation plan
  • Working Account Owners may take advantage of ABLE to Work whether they are working 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 obligation. Consult a tax advisor before making any such increase.

Below is an example of how a hypothetical IL ABLE Account Owner might take advantage of the additional contribution allowance that ABLE to Work makes possible:

Mary is an Illinois resident who works part time and does not participate in an employer-sponsored retirement program. Her parents and other relatives contribute the annual allowable maximum of $15,000 to her IL ABLE account in the year in question. Mary wants to contribute more to her IL ABLE account because she is earning income. She lives in a one-person household and earns $15,000 in gross wages in the example year. Mary does her research and knows that, for Illinois, the Poverty Guidelines* amount published by the U.S. Department of Health and Human Services (HHS) for the year in question is $12,760. Mary knows that the additional amount that may be contributed to her account must be the lesser of her gross wages or the amount stated in the Poverty Guidelines. Her gross wages are $15,000. The Poverty Guidelines amount for the year in question for Mary’s situation is $12,760. So, Mary calculates that an additional amount of up to $12,760 may be contributed to her IL ABLE account for the year. This means that the total amount that may be contributed to Mary’s IL ABLE account is $15,000 + 12,760 = $27,760 for the year in this example.

*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 in any given year.