Save with special tax advantages.
The earnings on your investments are federally tax-deferred and tax-free, if used for qualified disability-related expenses.1 This can help your savings compound, earning returns on your returns. Iowa taxpayers can deduct up to $3,439 in contributions from their adjusted gross income for 2020.2
The graphic below shows that the account owner, and anyone else who contributes to his or her account this year, may deduct contributions up to $3,439 in 2020. The account owner and others may contribute more than this amount, but can only deduct up to $3,439 of their contribution. Please keep in mind that the federal maximum annual contribution limit to any ABLE account is $15,000. This means that all contributions made to an IAble account cannot exceed $15,000 each year.