September 5, 2023 – Now that kids are back in school, parents of children with Individualized Education Plans will receive information about a State Treasurer’s Office program that helps families save money for disability-related expenses.
For the first time, Illinois school districts are required by law to include material about the Illinois ABLE (Achieving a Better Life Experience) program as part of a student’s IEP review meeting.
“We want more families to be aware of an important program that allows them to save for their child’s future,” said Illinois Treasurer Michael Frerichs, whose office administers the IL ABLE program. “The IL ABLE information that students and families will start receiving this school year will give them the tools they need to begin setting aside money for their children’s current and long-term expenses.”
IL ABLE accounts make it possible for people with disabilities and their families to save and invest money for disability-related expenses without losing federal benefits. Money in IL ABLE accounts can be spent on many of the expenses that come with living with a disability, such as assistive technology, therapies, specialized equipment, transportation, job coaching, health care, education and more.
An estimated 290,000 Illinois public school students have Individualized Education Plans, and many of these students are eligible to own an IL ABLE account.
Almost 5,000 IL ABLE accounts are open with more than $47 million in assets. In 2022, Treasurer Frerichs reduced annual maintenance fees by 25% for those who receive electronic statement notifications.
To be eligible for an ABLE account, the onset of the disability must have occurred before the person’s 26th birthday. Starting in 2026, that age rises to 46 as a result of the ABLE Age Adjustment Act, which Congress passed last December.
There are tax benefits as well. Earnings and withdrawals are tax-free when used for qualified expenses. In addition, Illinois taxpayers who contribute to an IL ABLE account may be eligible to take a state income tax deduction of up to $10,000 if filing as an individual and $20,000 jointly.
You can learn more and sign up HERE.
