State Treasurer to Host ABLE Information Session in Rockford
Program will explain how federally tax-advantaged savings program benefits people with disabilities.
Illinois State Treasurer Michael Frerichs is hosting an informational session on Feb. 10 at the State Regional office Building in Rockford to explain how persons with disabilities can benefit from the Achieving a Better Life Experience (ABLE) act.
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 jeopardizing their federal disability benefits.
Illinois leads the National ABLE Alliance, a partnership of 14 states with the goal of providing the most robust ABLE services possible at the lowest cost to account owners.
ABLE investment and banking accounts can grow tax free and can be used to pay for qualifying, disability-related expenses.
To qualify for an ABLE account, the account owner must have developed the disability or blindness before the age of 26. With the age established, a person who qualifies for Social Security Administration benefits, or has received a waiver from the IRS, will qualify for an ABLE account.
Annual contribution limits are tied to the federal gift tax amount, which today is $14,000. The ABLE investment can grow up to $100,000 and still not be counted toward eligibility for Social Security Income or other means-tested programs at the federal level. When an ABLE account balance exceeds the $100,000 cap, Social Security Income benefits are suspended. The benefits automatically resume if the account value falls below $100,000. ABLE balances have no implications on Medicaid eligibility.
For more information, visit www.IllinoisABLE.com.