It looks like 2025 will be a crucial year for the disability community, offering a valuable chance to boost your savings through three key provisions of the Achieving a Better Life Experience (ABLE) Act. However, these provisions are set to expire at the end of this calendar year, so time is running out. Here’s how you can take advantage of ABLE accounts during 2025.
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ABLE to Work
If you’re a working ABLE account holder and neither you nor your employer contributes to a retirement account, you can contribute more than the standard $19,000 annual limit (2025) to your ABLE account. The ABLE to Work provision allows you to contribute an additional amount up to either your earnings or the previous year’s federal poverty level—whichever is lower. This means you could save an extra $15,060 per year if you live in the continental U.S. (or $18,810 in Alaska or $17,310 in Hawaii). It’s a great way to grow your savings without risking the loss of benefits! -
ABLE Saver’s Credit
This credit allows you to receive up to $1,000 on ABLE contributions, reducing your overall tax liability. This provision makes saving even more rewarding by providing a tax break simply for contributing to your future. -
529 to ABLE Rollover
Families with 529 education savings accounts can transfer funds into an ABLE account without incurring any income tax liability. This rollover provision enables families to shift their focus from educational expenses to long-term financial stability for individuals with disabilities, while still preserving the tax benefits.
With these valuable provisions nearing expiration, there is hope ahead. On February 19, 2025, Sens. Eric Schmitt (R-Mo.) and Chris Van Hollen (D-Md.), along with Reps. Lloyd Smucker (R-Pa.) and Don Beyer (D-Va.), reintroduced the ENABLE Act to the 119th Congress, which would make these provisions permanent. Stay tuned for updates and be sure to support this important legislation.
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