According to the Florida Department of Economic Opportunity, there are an estimated 400,000 individuals with physical, developmental or intellectual disabilities that are employed across our state.
Are you an ABLE United account holder who is working?
If “yes”, then you might be eligible to save even more in your ABLE account.
Thanks to ABLE to Work, working account holders who do not participate in an employer-sponsored retirement plan may contribute above the annual standard contribution limit of $15,000. The additional contribution is based on the lessor of:
- The account holder’s compensation for the taxable year; or
- The federal poverty line for a one-person household ($12,490 in 2020).
With the implementation of ABLE to Work, individuals with disabilities who are working now have the opportunity to save up to a maximum of $27,490 each year. It’s important to remember that contributions into an ABLE United account from wages still count as earned income, but do not count as an asset for federally means-tested programs such as Medicaid. For Supplemental Security Income (SSI), the first $100,000 does not count as an asset.
The additional contribution for account holders who are working is in effect through December 31, 2025, when the ABLE to Work Act is set to expire.
Additionally, account holders who are able to take advantage of contributing earned income to their ABLE account may also be able to take advantage of the Retirement Savings Contributions Credit (Saver’s Credit). Saver’s Credit is an existing federal tax credit that low and middle-income individuals can claim when they make contributions to a retirement account.
Ready to contribute?
You can make an ABLE to Work contribution online or by using the Contribution Form.