Saving & Investing with IL ABLE

IL ABLE offers six high-quality, low-cost investment options, plus an FDIC-insured checking account option with a debit card and no overdraft fees.

  • Annual contributions totaling up to $16,000 can come from any source, such as yourself, family, friends and third parties.
  • Contributions to your IL ABLE account can be made electronically, by check and convenient payroll direct deposit, and you can set up automatic, recurring contributions.
  • You, the Account Owner or your Authorized Individual, retain control over the account.
  • Earnings and withdrawals on IL ABLE accounts are tax-free if they are used for qualified disability-related expenses. Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as applicable state and local income taxes.
  • Illinois taxpayers can contribute to any IL ABLE account and take a state tax income tax deduction – up to $10,000 if filing as an individual or $20,000 if filing jointly. Consult with a tax advisor to discuss your specific situation.
  • The total balance of your IL ABLE account can grow to $500,000. At that point, contributions may no longer be made. However, the account may still grow based on earnings.
  • A rollover from a 529 College Savings account, such as Bright Start, into an IL ABLE account can be made for the same beneficiary or for a member of the family of the 529 College Savings account beneficiary. The maximum rollover amount per year is $16,000. For more information, consult the IL ABLE Plan Disclosure Documents.
  • No hidden fees. The annualized investment costs on assets per investment option range from 0.30% to 0.33%, depending on which investment option(s) you select. Each account is charged an account maintenance fee of $15 each quarter. This fee can be discounted by $3.75 if you select email delivery for statements and confirmations.

For more information, consult the IL ABLE Plan Disclosure Documents.