Last December, Congress strengthened ABLE further by passing the ABLE to Work Act, which allows individuals with disabilities who are working to contribute even more to their ABLE accounts. In many cases, working individuals with disabilities can contribute up to $27,060 per year into their ABLE accounts, and earn tax-free on those contributions. Contributions are also eligible for the Saver’s Credit, a federal tax credit for retirement contributions that low and middle-income individuals can claim. Simply put, ABLE to Work provides valuable improvements to help individuals with disabilities achieve greater financial wellness.
Eligible Americans living with disabilities can open an account in almost any of the 39 states plus the District of Columbia that have created ABLE programs, including Missouri and Illinois. It’s advisable to look at your own state’s program first.
While ABLE accounts have already helped thousands better manage the costs of living with a disability, there are important ways to improve the program. As co-chairs of the National Association of State Treasurers’ (NAST) ABLE Committee, we work with other state treasurers to analyze ABLE’s success and advocate for improvements in Congress.
While we continue to lobby Congress for additional ABLE improvements, the most important way to ensure ABLE accounts continue to be a valuable resource for Americans with disabilities is to make sure that people know about it. Almost 500,000 individuals living with disabilities and their families in Illinois and Missouri are eligible to open ABLE accounts and take advantage of the opportunity to earn, save money and achieve greater financial wellness.
If you or a loved one is living with a disability, consider opening an ABLE account. Contact your state’s ABLE plan to learn more. By participating, individuals no longer live in fear that success in employment could jeopardize the benefits that they rely on to make ends meet.
Thursday, October 25, 2018
At The St. Louis Post-Dispatch, Illinois state treasurer Michael Frerichs and Missouri state treasurer Eric Schmitt write: