ABLE Account Updates for 2018

January 1, 2018

In 2018, there will be some changes for ABLE accounts:

  • If you have an ABLE account and you work, you can put up to an extra $12,880 of your earnings into your account (on top of the regular $16,000 that is allowed). The $12,880 must be from your own earnings – it cannot be contributions from others or money you get from benefits or other unearned income.
    • Note: This means that if you earn $12,880 or more, you could have a total of up to $28,880 go into your ABLE account in a year. If you earn less than $12,880, the amount you could contribute would be lower.
  • If you work and save money in an ABLE account, you may qualify for the Saver’s Credit when you file your federal taxes.
  • Money can be rolled over tax-free from a regular 529 college savings plan to an ABLE account. That means that money which hasn’t been or won’t be used for college can instead be used for expenses that are approved for usage from an ABLE account.
  • If you have an account, you have to make sure that too much money isn’t contributed into your account (even if it is other people making the deposits). Check with your ABLE program if you have questions about this.

Learn more about ABLE accounts on DB101. This article will be updated for these changes as more information becomes available.