ABLE Account Strategies
ABLE Account Strategies
Living with a disablility is often associated with significant amounts of extra costs. Individuals and families can now own and contribute to ABLE Accounts. These accounts are tax-advantaged and can help fund qualified expenses for the person with a disability.
The ABLE Act allows contributions by participating individuals, including family and friends for a single tax year in the amount of $15,000 (2020). An employed ABLE account owner who does not participate in an employer sponsored retirement account can make an additional contribution up to the lesser of : (1) the ABLE account owner's compensation for that tax year, or (2) the poverty line amount of $12,490 (2020). Funds contributed to an ABLE Account grow tax deferred, and can be used tax-free for qualified disability expenses. For a list of these qualified expenses, please visit the National ABLE Resource Center by clicking on the icon below:
Wisconsin - ABLE Accounts are currently not available in the State of Wisconsin, but eligible residents are free to participate in any other state that offers them access. Click Here for Wisconsin's Department of Revenue statement on ABLE Accounts.