What's New for ABLE in 2018
Over the past year, the availability of Achieving a Better Life Experience (ABLE) programs has increased throughout the country, and now eligible people with disabilities can open ABLE accounts in 33 states.
But new programs in more states aren't the only thing that's new in 2018, and today, the ABLE National Resource Center (NRC) is sharing major updates to the ABLE Act.
These changes make it easier for account holders to save more money and plan for the future.
Annual Contribution Limit: To adjust for inflation, the annual contribution limit has been raised to $15,000 (previously $14,000) for the 2018 tax year.
Saver's Tax Credit: Account owners who contribute their own money into their ABLE account may now be eligible for the Retirement Savings Contributions Tax Credit ("Saver's Credit"). There are additional requirements that must be met to qualify for this non-refundable credit.
ABLE Financial Planning Act: If you are the owner of both an ABLE account and a 529 College Savings account (or a family member is the 529 College Savings account beneficiary, as defined by the law), you may now transfer funds from the 529 College Savings account to your ABLE account without incurring tax or penalty. However, the funds transferred from the 529 College Savings account do count toward your annual contribution limit of $15,000 for the tax year.
ABLE to Work Act: If you're an ABLE account owner and you work, you may be eligible to contribute above the $15,000 annual contribution limit. The additional amount allowed will depend on your gross income. The ABLE account owner is the only person who can contribute above the $15,000 limit. While ABLE to Work has been passed into law, many questions remain and individual programs may seek guidance from the U.S. Department of the Treasury before implementing it.
Get to know ABLE
Check out these resources to learn about ABLE accounts:
- Getting to Know the ABLE Act
- ABLE Accounts: What You Should Know
- Money Mondays: Tips for Opening Your ABLE Account
Use the ABLE NRC's state comparison tool to learn more about the different programs and accounts that may be available to you.
Ready to learn more?
During the March WISE webinar, we'll learn more about the ABLE Act and how ABLE accounts can help certain people with disabilities save money. Register to attend the webinar on March 21, 3 – 4:30 p.m. ET.
The ABLE NRC offers information and resources to help you learn more about the ABLE Act and ABLE Accounts. Visit www.ablenrc.org to learn more.
About Ticket to Work
Social Security's Ticket program supports career development for people ages 18 through 64 who receive Social Security disability benefits (SSI or SSDI) and want to work. The Ticket program is free and voluntary. It helps people with disabilities move toward financial independence and connects them with the services and support they need to succeed in the workforce.
You can call the Ticket to Work Help Line at 866-968-7842 or 866-833-2967 (TTY) Monday through Friday, 8 a.m. to 8 p.m. ET. Ask a representative to send you a list of service providers or find providers on your own with the Ticket program Find Help tool.
