ABLE Accounts – Did You Know?
Under the Tax Cuts and Job Act (TCJA), starting in 2018, the annual contribution limit for Achieving a Better Life Experience (ABLE) accounts has been increased from $14,000 to $15,000.
You may also be able to claim the Saver’s Credit for a percentage of your contribution to an ABLE account if you’re the designated beneficiary.
The TCJA also allows eligible individuals with disabilities to put more money into their ABLE accounts, and roll in money from their 529 plan to their own or a family’s ABLE account. The additional amount may be up to the lesser of the two amounts:
– The designated beneficiary’s compensation for the tax year
– The poverty line for a one-person household. For 2018, this amount is $12,140 in the continental U.S., $13,960 in Hawaii, and $15,180 in Alaska.