Implementation of ABLE accounts coming soon
ABLE accounts in Illinois.
Public Act 99 – 145 (SB 1383) was signed into law on July 27, 2015. This Law creates the “Achieving a Better Life Experience” or “ABLE” account program to encourage and assist individuals and families in saving private funds for the purpose of supporting persons with disabilities.
The Treasurer’s office will be responsible for the administration and implementation of ABLE accounts in accordance with federal rules and regulations. As soon as the IRS releases regulations governing ABLE accounts the Illinois State Treasurer’s Office will implement the new law.
ABLE accounts are similar to 529 college saving plans with earnings that are tax-advantaged federally. ABLE accounts can be used to assist in maintaining health, independence, and quality of life, and to provide secure funding for disability-related expenses on behalf of designated beneficiaries with disabilities.
The savings accounts can supplement, but will not replace, benefits provided through private insurance, federal and State medical and disability insurance, the beneficiary’s employment, and other sources. The accounts can be used to pay for qualifying expenses such as education, health, housing and transportation costs.
Illinois will implement the ABLE program after the IRS issues regulations for the program.