Save with special tax advantages.
Your IAble account assets grow deferred from federal and state income taxes. You will not pay federal taxes on money withdrawn from your IAble account to pay for qualified disability expenses.1 If you are an Iowa taxpayer, all withdrawals are free from state income taxes. Iowa taxpayers can deduct up to $3,522 in contributions from their adjusted gross income for 2022.2
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 $3,522 in 2022. The account owner and others may contribute more than this amount, but can only deduct up to $3,522 of their contribution. Please keep in mind that the federal maximum annual contribution limit to any ABLE account is $16,000. This means that all contributions made to an IAble account cannot exceed $16,000 each year.
1 Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as applicable state and local income taxes. 2 If withdrawals are not qualified, the deductions must be added back to Iowa taxable income by the Account Owner. Adjusted annually for inflation.