The ABLE Account Program Comes to Illinois

Millions of individuals with disabilities rely on public benefits for health care, food, housing, and income. Currently an asset test on benefits programs, such as Social Security Income (SSI) and Social Security Disability Insurance (SSDI), prohibits recipients from building savings over $2000. Essentially, to remain eligible for much needed benefits programs, an individual must remain poor and financially insecure.

In the past year, we have been advocating at the federal and state level for the Achieving a Better Life Experience (ABLE) Act. The ABLE Act allows people with disabilities and their families to build much-needed savings, helping them become financially secure.

Last December, Congress passed the ABLE Act, but each state is responsible for creating and operating an ABLE program. This spring, the General Assembly passed SB 1383, bringing the ABLE Account Program to Illinois!

Awaiting Governor Rauner’s signature, the ABLE Program will allow people with disabilities and their families to open tax-free savings accounts in Illinois. Critically, the money in these accounts will not be counted against them when applying for federal benefits programs. For the first time, individuals with disabilities in Illinois have the opportunity to build the savings necessary for real financial security.

The ABLE Account Program will be administered by the Illinois State Treasurer, who worked with Sen. Bennett and Rep. Kelly Burke on the passage of SB 1383. In Treasurer Frerichs’ recent newsletter, he stated this about the passage of SB 1383:

“I chose a life of public service to help Illinois families. I am proud of the members of the Senate and House for passing this legislation to help ease financial strain on these families,”Treasurer Frerichs said. “With the ABLE Account program, we can help individuals with disabilities get the tools necessary to attain financial stability and independence.”

What are the Next Steps?

Passed out of the General Assembly with unanimous support, SB 1383 is awaiting Governor Rauner’s signature. After becoming law, the Illinois State Treasurer’s Office will begin setting up the program. As there is no specific timeline for the ABLE Program to be set up, IABG partners will support the Treasurer’s Office in implementing the program in an effective and timely manner.

Additionally, the Department of Treasury just released proposed regulations that will guide states’ implementation of the program.

Read about the most recent updates in the implementation of the ABLE Account Program.

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