IL ABLE & Working Account Owners

IL ABLE Account Owners who earn income can contribute additional funds beyond the Annual $16,000 ($17,000 beginning January 1, 2023) Contribution Limit - up to $12,880 more.

How it works

The total additional annual contribution allowed is equal to:

  • The U.S. Department of Health and Human Services (HHS) Poverty Guidelines* amount for a one-person household in the Account Owner's state of residence for the previous calendar year, currently $12,880 for Illinois.
  • OR
  • The Account Owner's gross wages, whichever is less.

Working Account Owners are not eligible to contribute additional funds to their IL ABLE Account if they are already contributing to an employer-sponsored:

  • 401(k) defined contribution plan
  • 403(b) annuity plan
  • 457(b) deferred compensation plan

It is the Account Owner's or Authorized Individual's responsibility to ensure that the Annual Contribution Limit is not exceeded. Contributions in excess of the allowable limits could impact tax obligation. Consult a tax advisor before making any such increase.

Below are hypothetical examples of how an employed Account Owner in Illinois might take advantage of the additional contribution allowance that ABLE to Work makes possible:


Young man seated at desk smiling at camera and using sign language
Example 1. Angel is an employed Account Owner in Illinois and does not participate in an employer-sponsored retirement plan. He will earn $20,000 in 2022. In Illinois, the 2021 Federal Poverty Level for a one-person household was $12,880. Since $12,880 is less than $20,000, Angel may exceed the Annual Contribution Limit by as much as $12,880 of his earnings amount in 2022.

Young woman with disability smiling at camera from workplace
Example 2. Jenni is an employed Account Owner in Illinois and does not participate in an employer-sponsored retirement plan. She will earn $5,000 in 2022. In Illinois, the 2021 Federal Poverty Level for a one-person household was $12,880. Since $5,000 is less than $12,880, Jenni may exceed the Annual Contribution Limit by up to $5,000 of her 2022 earnings amount.

For more information, consult the Plan Disclosure Booklet.

Savers Credit

Account Owners may be eligible for a federal income-tax credit for contributions made to their ABLE Account.
Visit IRS.gov or consult a tax advisor for more information.

*The Poverty Guidelines amount changes each year. Please consult the U.S. Department of Health and Human Services Poverty Guidelines for the correct amount for your state of residence.

Read the Plan Disclosure Booklet.