Save with special tax advantages.
The earnings on your investments are federally tax-deferred and tax-free, if used for qualified disability expenses.1 That can help your savings compound, earning returns on your returns. Iowa taxpayers can deduct up to $3,387 in contributions from their adjusted gross income for 2019.2
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 $3,387 in 2019. The account owner and others may contribute more than this amount, but can only deduct up to $3,387 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.
Contribute more with Earned Income.
ABLE account owners who earn income may contribute additional funds beyond the annual $15,000 contribution limit. The additional annual contribution amount is equal to the federal poverty level for a one-person household (in your state of residence) or the account owner's gross wages, whichever is less. Working account owners are not eligible to contribute the additional funds if they are already contributing to:
- a defined contribution plan
- an annuity contract
- an eligible deferred compensation plan
Account Owners should keep adequate records to ensure the limit is not exceeded. Any increase in contributions could impact tax obligations, so consult a tax advisor before making any such increase. If you are eligible, fill out the Self Certification form.
Maintain your current benefits.
Balances of $100,000 or less are excluded from your SSI resource limit.
Only the amount OVER $100,000 is counted against your limit, along with assets held in non-ABLE accounts.
If your account causes you to exceed the SSI resource limit, then your SSI benefits will be suspended until the account balance no longer exceeds your resource limit.3
You'll continue to be eligible for Medicaid, regardless of your account balance.4
Open an account in minutes.
Just tell us a little bit about yourself and select your investments. That's it. You can easily access your account at any time, from a PC, tablet, or mobile device. Plus, you can get started with as little as $25 and even set up recurring contributions.
Make withdrawals easily.
With IAble, you can access your savings by:
mailing a paper form (coming Spring 2017)
Avoid hidden fees.
The annualized investment costs on assets per investment option range from 0.34% to 0.38%, depending on which investment option(s) you select. Each account is charged an annual account maintenance fee of $40 and an annual paper delivery fee of $15 for the printing and mailing of statements and confirmations. The annual paper delivery fee will be waived if you sign up for electronic delivery.
For more information about tax and other benefits offered by IAble, refer to our Program Description.
1Earnings 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. 2If withdrawals are not qualified, the deductions must be added back to Iowa taxable income. Adjusted annually for inflation. 3Please see the Plan Disclosure Documents for complete details on SSI suspension and any requirements on when you use the funds, to prevent suspension of benefits. 4Upon the death of the account owner, the state Medicaid agency shall be a creditor for the total medical assistance paid under the state’s Medicaid program on behalf of the account owner after the establishment of the account, upon filing of a claim for payment by such state.